Question

How much will the student have to repay at the eight month period?

Answer 1

Data:

Loan: $6000

rate: 15%

time: 8months

You turn the number of months into years:

$8\text{months}\cdot\frac{1\text{year}}{12\text{months}}\approx0.6\bar{6}\text{years}$

Then, the total amount Student will have to repay is:

$A=P+P\cdot r\cdot t$

P in the principal amount of the Loan, you need to write the rate as decimal (0.15)

$\begin{gathered} A=6000+6000\cdot0.15\cdot0.6\bar{6} \\ A=6000+600 \\ A=6600 \end{gathered}$Student will have to repay $6600