8. jill kramer borrowed $25,000 to pay for a startup business. jill must repay the loan at the end of five months in one payment with a 6 percent simple interest rate. what is the total amount that jill must repay in five months? how much interest does jill repay?

Jill has five months to pay back the loan, and she must make one single payment at a simple interest rate of 6%. Jill has a five-month repayment period with a total of $25625.

Simple interest is what?

Simple interest makes calculating loan interest quick and easy. Simple interest is calculated by dividing the principal by the daily interest rate and the number of days between payments. Although some mortgages employ this calculation method, this type of interest typically applies to auto loans or short-term loans.

Calculation:

Following is a list of the information delivered in accordance with the scenario:

Total amount (P)= $25,000

Rate of interest = 6%

Time period = 5 months

So, the rate of interest for 5 months (r) = 6% × 5 ÷ 12 = 2.5%

Time period (t)= 1

So, using the formula below, we can determine Jill's loan repayment value:

Loan repayment value = P × ( 1 + r)^t

= $25,000 × ( 1 + 2.5%)^1

= $25,000 × ( 1.025)^1

= $25,625

Learn more about the simple interest with the help of the given link:

brainly.com/question/25845758

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