Question

A man borrowed $3500 from a bank for 6 months. The bank collected 7-1/2% simple interest on the date of maturity. How much did the man pay for use of the money and what was the amount he repaid the bank on the due date of the note

Answer 1

Answer:

$3762.50

Step-by-step explanation:

From the problem, we can see our initial loan is 3500. On the return date, the interest of the loan is collected 7.5%. To find out how much the man paid for the loan, we need to find out how much he paid in interest, which is the percentage of the interest converted to a decimal x the initial loan. We get $262.5, and then we need to pay back the interest plus the initial loan we borrowed from the bank, so we need to add those together to get:

$3762.50