Question

Susan loaned Adam $15,430 at an interest rate of 9% for 2 years. How much will Adam pay Susan at the end of 2 years. Round youranswer to the nearest cent, if necessary.

Answer 1

Given:

$\begin{gathered} \text{Amount loaned = \ 15430} \\ \text{Interest rate = 9\%} \\ \text{time = 2 years} \end{gathered}$

The total interest on the loan (I) can be calculated using the formula:

$\begin{gathered} I\text{ =P}\times R\times T \\ \text{where P is the principal amount} \\ R\text{ is the rate of interest} \\ T\text{ is the time} \end{gathered}$

Substituting we have:

$\begin{gathered} I\text{ = }15430\text{ }\times\frac{9}{100}\times2 \\ =\text{ 2777.4} \end{gathered}$

The total amount that Adam would pay Susan is the sum of the principal and the interest:

$\begin{gathered} \text{Amount = 15430 + 2777.4} \\ =\text{ 18207.4} \end{gathered}$

Answer: $18207.40 (to the nearest cent)