Question

You lend $1500 to a friend for four months at an interest rate of 4 ¾% per year. What total amount will your friend have to pay back?

Answer 1

He has to pay an amount of $3,875 after the 4 months

Explanation:

I = PRT

100

T= 4 months

Therefore

T = 4/12

= 1/3

R = 43/4

R = 19/4

I = 1500 × 19

100 × 4 ×3

I = $2375

A = I +P

A = $1500 + $2375

= $3,875