Question

Celeste Nossiter borrowed $9000 from her father to buy a used car. She repaid him after 8 months, at an

annual interest rate of 2.9%. Find the total amount she repaid.
The total amount she repaid is $
(Round to the nearest cent as needed.)

Answer 1

Answer: To calculate the total amount Celeste repaid, we need to consider both the borrowed amount and the interest accrued over the 8 months.

First, let's calculate the interest accrued:

Interest = Principal * Rate * Time,

where:

Principal = $9000 (the borrowed amount),

Rate = 2.9% per annum (convert it to a decimal by dividing by 100, i.e., 2.9 / 100 = 0.029),

Time = 8 months (convert it to years by dividing by 12, i.e., 8 / 12 = 2/3 years).

Interest = $9000 * 0.029 * (2/3) ≈ $174.60.

Now, let's find the total amount repaid:

Total amount repaid = Principal + Interest = $9000 + $174.60 ≈ $9174.60.

So, Celeste repaid a total amount of approximately $9174.60 to her father.