Question

Vince borrows $900 to buy a couch. He will pay off the loan by paying 1.5% simple interest for 2 years. Vince incorrectly calculates the amount he will pay back using the expression below. 900 + 900(1.015 • 2) What is the correct amount Vince will pay back altogether? Explain the error in Vince’s expression.

Answer 1

To calculate the amount that Vince should pay back, we can use the formula of 
A = P + PRT 
where A is amount (unknown), P is principal ($900), R is rate of interest (1.5%).

Which in this case, Vince did follow the correct formula, but what he did wrong, it that he incorrectly changed the rate to a decimal. Instead, 1.5% should be 0.015 in decimal form.

So, the correct formula should be
A = 900 + 900(0.015x2)
A = 900 + 27
A = 927

So, the correct amount Vince should pay is $927.

Answer 2

The correct amount Vince will pay back altogether is $927 and this can be determined by using the simple interest formula.

Given :

• Vince borrows $900 to buy a couch.
• He will pay off the loan by paying 1.5% simple interest for 2 years.
• Vince incorrectly calculates the amount he will pay back using the expression below. 900 + 900(1.015 $\times$ 2).

The following steps can be in order to determine the correct amount Vince will pay back altogether:

Step 1 - The formula of simple interest can be used in order to determine the correct amount Vince will pay back altogether.

Step 2 - The formula of simple interest is given below:

$\rm A = P (1+RT)$

where A is the final amount, P is the principal amount, R is the interest rate, and T is the time.

Step 3 - Substitute the values of the known terms in the above expression.

A = 900(1 + 1.015 $\times$ 2)

Step 4 - Simplify the above expression.

A = $927

For more information, refer to the link given below:

https://brainly.com/question/2793278