Question

Lynn takes out a loan for $7540 that charges an annual simple interest rate of 6.5%. She does not make any payments for 2 1/2 years. How much will Lynn owe on her loan after 2 1/2 years?

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Answer 1

Answer:

The Amount after 2 $\dfrac{1}{2}$ years is $8765.25

Step-by-step explanation:

Given as :

The principal loan amount = p = $7540

The rate of interest = r = 6.5%

The time period of loan = t = 2 $\dfrac{1}{2}$ years = $\dfrac{5}{2}$ years = 2.5 years

Let The Amount after 2.5 years = $A

Now, From Simple Interest method

Simple Interest = $\dfrac{\textrm principal\times \textrm rate\times \textrm time}{100}$

Or , s. i = $\dfrac{\textrm p\times \textrm r\times \textrm t}{100}$

Or, s.i =  $\dfrac{\textrm 7540\times \textrm 6.5\times \textrm 2.5}{100}$

Or, s.i = $\dfrac{122525}{100}$

Or, s.i = $1225.25

So, The simple interest =  s.i = $1225.25

Now, Again

∵ Amount = Principal + interest

So, A = $7540 + $1225.25

∴  A = $8765.25

So, The Amount after 2 $\dfrac{1}{2}$ years = A = $8765.25

Hence,The Amount after 2 $\dfrac{1}{2}$ years is $8765.25 Answer