Question

Jason and Alicia each want a TV for their living room. They go to walmart and find out neither of them have enough money, so they both got a loan from their parents. Jason’s father is giving him a loan for 3 years at 5.5%. Alicia’s mother is lending her money for 7 years at 2.5%.

Answer 1

hello your question is incomplete but i will give you a general answer to determine the total amount payable by both parties

answer : A = P ( 1 + rt )

Explanation:

Jason takes a loan from his Father at an interest rate of 5.5% for a period of 3 years. assuming the principal amount borrowed to be X . The Total amount to be paid by Jason at the end of three years will be

A = P ( 1 + rt )

where P = principal

A = Total amount to be paid back

r = interest rate

t = period ( years )

Note : The same formula is also applicable to Alicia