Question

A woman borrowed ​$3000 from a bank for 3 months. A friend was cosigner of the woman​'s personal note. The bank collected 6 and one half ​% simple interest on the date of maturity.a) How much did the woman pay for the use of the money? b) Determine the amount she repaid to the bank on the due date of the note.

Answer 1

Answer:

Step-by-step explanation:

We would apply the simple interest formula which is expressed as

I = PRT/100

Where

P = principal or amount borrowed

T = time in years

R = interest rate on amount borrowed.

I = interest paid.

From the given information,

Principal = $3000

T = 3 months = 3/12 = 0.25 years

R = 6 1/2 % = 6.5%

Therefore,

a) the amount that the woman pay for the use of the money is I

I = (3000 × 6.5 × 0.25)/100 = 48.75

b) The amount she repaid to the bank on the due date of the note would be

Principal + interest

= 3000 + 48.75 = $3048.75

Answer 2

The interest that will be charged to the woman for the use of the money is $48.75.

What is simple interest?

Simple Interest is the interest that is charged on an amount of principal. It is given by the formula,

$\rm Simple\ Interest=\dfrac{P \times R \times T}{100}$

As it is given that the principal amount is $3,000 while the rate of interest is 6.5% and the period of interest is 3months or 0.25 years.

A.) The interest that will be charged to the woman for the use of the money,

$\text{Interest Charged} = \dfrac{\ 3,000 \times 0.25 \times 6.5}{100} = \ 48.75$

hence, the interest that will be charged to the woman for the use of the money is $48.75.

B.) The amount she repaid to the bank on the due date of the note.

The amount she repaid to the bank on the due date of the note will be the sum of the principal amount and interest.

$\text{Amount she repaid to the bank} = \ 3,000 + \ 48.75 = \ 3,048.75$

Hence, the amount she repaid to the bank on the due date of the note is $3,048.75.

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