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)

Answer 1

The expression that Vince used to calculate the amount he will pay back is incorrect.

To calculate the amount that Vince will pay back, we need to use the formula for simple interest, which is:

Interest = Principal * Rate * Time

where Principal is the amount borrowed, Rate is the interest rate, and Time is the length of the loan in years.

In this case, the Principal is $900, the Rate is 1.5% (or 0.015 as a decimal), and the Time is 2 years. Substituting these values into the formula, we get:

Interest = 900 * 0.015 * 2

Interest = $27

Therefore, the amount that Vince will pay back is the Principal plus the Interest, which is:

Amount to pay back = Principal + Interest

Amount to pay back = $900 + $27

Amount to pay back = $927

So, the correct expression for the amount that Vince will pay back is:

900 + 27 = 927

Therefore, the amount that Vince will pay back is $927.