Question

Beyonce went to the mall and saw a massage chair that she would have to take a loan out for $6500 to purchase. The bank said that she could get a simple interest rate of 8% for 5 years. What is the total amount that Beyonce will pay for the chair?

Answer 1

Answer:

The total amount that Beyonce will pay for the chair is $9100.

Step-by-step explanation:

The Principal amount of chair  = $6500

Rate of interest  = 8%

Time = 5 years

Now, SIMPLE INTEREST  = $\frac{P\times R \times T}{100}$

So, here calculating the interest on the chair, we get:

$SI = \frac{6500 \times 5 \times 8}{100} = 2600$

So, the interest on the amount of chair for 5 years  is $2600.

Total amount of chair  = Original Amount of Chair + Interest Amount

                                      = $6500 + $2600 = $9100

Hence, the total amount that Beyonce will pay for the chair is $9100.

Answer 2

Based on the amount borrowed and the interest rate as well as time, the total amount Beyonce would pay is $9,100

The interest on the loan would be:

= 6,500 x 8%

= $520

In 5 years that interest would be:

= 5 x 520

= $2,600

The total Beyonce would pay is:

= Loan amount + Interest

= 6,500 + 2,600

= $9,100

In conclusion, the total amount paid would be $9,100

Find out more about simple interest at https://brainly.com/question/20690803.