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20 March, 10:07

A family borrows money for a rainforest tour. The simple annual interest rate is 12%. The loan is paid after 3 months. What is the total amount paid for the tour?

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  1. 20 March, 10:13
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    A = 1.36P

    Step-by-step explanation:

    A = P (1 + rt)

    If the money borrowed (principal) is P then the amount paid after 3 years is;

    A = P (1 + 0.12 (3))

    A = P (1 + 0.36)

    A = 1.36P
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