posted by JC on .
Please confirm if I did this correctly:
What is the Principal?
What is the total amount paid by the consumer?
x 3.5 years
What is your question?
From the disconnected pieces of arithmetic , are we finding the amount due after 3/5 years at simple interest of 10% on a loan of $21250 ?
That would be 21250 + (.1)(3.5)(21250) = 28687.50
Very unusual to have "simple interest" on a time longer than 1 year. Compound interest would be the norm