Posted by **JC** on Saturday, June 4, 2011 at 7:37pm.

Please confirm if I did this correctly:

What is the Principal?

Principal $21250

X 10%

2,125

What is the total amount paid by the consumer?

2,125

x 3.5 years

7,437.5

+21,250.0

28,687.50

- Business Math -
**Reiny**, Saturday, June 4, 2011 at 7:51pm
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

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