Answer:
$714.08
Explanation:
Interest = P*R*T
I = Interest
P = Principal amount (the initial amount borrowed or invested)
R = Rate of interest per period (as a decimal)
T = Time period (in years)
R = 31% (as a decimal, this is 0.31)
T = 4 months (convert to years by dividing by 12, so T = 4/12 = 1/3 years)
Now, plug these values into the formula:
I = $650 * 0.31 * (1/3)
I = $650 * 0.31 * 0.3333...
I ≈ $64.08 (rounded to two decimal places)
So, the interest you'll have to repay is approximately $64.08. To find the total amount you have to repay, add this interest to the principal amount:
Total Repayment = Principal + Interest
Total Repayment = $650 + $64.08
Total Repayment ≈ $714.08