Question

A family borrows money for a rainforest tour. The simple annual interest rate is 12%. The loan is paid after 3 months. What is the total amount paid for the tour?

Answer 1

To find the total amount paid for the tour, you need to calculate the amount of interest and add it to the principal amount borrowed. In this case, the total amount paid would be $5150.

Step-by-step explanation:

To calculate the total amount paid for the tour, we need to find the amount of interest and add it to the principal amount borrowed.

First, let's find the amount of interest:

Interest = Principal imes Rate imes Time

Since the loan is paid after 3 months, the time is 3/12 or 0.25 years.

Interest = Principal imes 0.12 imes 0.25

Now, let's calculate the interest:

Interest = Principal imes Rate imes Time

Now, let's calculate the interest:

Interest = 5000 imes 0.12 imes 0.25

Interest = 150

Now, let's calculate the total amount paid:

Total Amount Paid = Principal + Interest

Total Amount Paid = 5000 + 150

Total Amount Paid = $5150

Answer 2

1,266.90

Step-by-step explanation:

1. 940 + 170 + 120 = 1,230

2. 1,230 x 0.12 x 0.25 = 36.9

3. 36.9 + 1,230 = 1,266.90 (FINAL ANSWER)