A woman borrowed $3000 from a bank for 3 months. A friend was cosigner of the woman 's personal note. The bank collected 6 and one half % simple interest on the date of maturity. a) How much did the woman pay for the use of the money? b) Determine the amount she repaid to the bank on the due date of the note.

Question

Angel Shannon

Mathematics

29 July, 10:14

A woman borrowed $3000 from a bank for 3 months. A friend was cosigner of the woman 's personal note. The bank collected 6 and one half % simple interest on the date of maturity. a) How much did the woman pay for the use of the money? b) Determine the amount she repaid to the bank on the due date of the note.

+2

Answers (1)

Know the Answer?

Oliver Cuevas · Answer 1

Step-by-step explanation:

We would apply the simple interest formula which is expressed as

I = PRT/100

Where

P = principal or amount borrowed

T = time in years

R = interest rate on amount borrowed.

I = interest paid.

From the given information,

Principal = $3000

T = 3 months = 3/12 = 0.25 years

R = 6 1/2 % = 6.5%

Therefore,

a) the amount that the woman pay for the use of the money is I

I = (3000 * 6.5 * 0.25) / 100 = 48.75

b) The amount she repaid to the bank on the due date of the note would be

Principal + interest

= 3000 + 48.75 = $3048.75