Answer:
a) The interest that will be owed after 193 days is $361.68
b) the amount owed after 193 days = $6061.68
Explanation:
Given:
Amount borrowed = $5700
rate = 12% = 0.12 (simple interest)
time = 193 days
To find:
a) the interest on the that will be owed after 193 days
b) the amount owed after 193 assuming no additional payment
a) To determine the interest, we will apply simple interest formula:
[tex]\begin{gathered} I\text{ = PRT} \\ I\text{ = interest} \\ P\text{ = amount borrowed} \\ R\text{ = rate} \\ T\text{ = time \lparen in years\rparen} \end{gathered}[/tex]
substitute the values into the formula:
[tex]\begin{gathered} time\text{ = 193 days} \\ 1\text{ day = 1/365 per year} \\ 193\text{ days = }\frac{193}{365}\text{ per year} \\ \\ I\text{ = 5700 }\times\text{ 0.12 }\times\frac{193}{365} \\ I\text{ = 361.68} \end{gathered}[/tex]
The interest that will be owed after 193 days is $361.68
b) Amount owed = Amount borrowed + interest owed
[tex]\begin{gathered} Amount\text{ owed = 5700 + 361.68} \\ \\ The\text{ amount owed after 193 days = \$6061.68} \end{gathered}[/tex]
