Question #47598

Find the total amount that must be repaid on the following note described.
$8,563 borrowed at 15.5% simple interest
What is the total amount to be repaid 3 years, 125 days later? (Round your answer to the nearest cent.)

Expert's answer

In finance, a loan is a debt provided by one entity (organization or individual) to another entity at an interest rate, and evidenced by a note which specifies, among other things, the principal amount, interest rate, and date of repayment.

The total amount to be repaid 3 years, 125 days later will be P = 8,563*(1 + 0.155*(3+125/365)) = $12,999.34

The total amount to be repaid 3 years, 125 days later will be P = 8,563*(1 + 0.155*(3+125/365)) = $12,999.34

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