Tony opened a hot dog stand last April. He borrowed $ to pay for the stand and startup inventory, and he agreed to pay off the loan in months at % simple interest. Find the total amount required to repay the loan.
To find the total amount required to repay the loan, we need to calculate the interest on the loan.
First, we need to determine the interest amount.
The formula for simple interest is:
Interest = (Principal * Rate * Time) / 100
Here, the Principal is the borrowed amount, Rate is the interest rate, and Time is the loan duration in months.
Let's assume the borrowed amount is $P, the interest rate is R%, and the loan duration is T months.
Therefore, the interest amount can be calculated as:
Interest = (P * R * T) / 100
The total amount required to repay the loan is the sum of the Principal and the Interest:
Total Amount = Principal + Interest
Substituting the values back into the formulas gives:
Total Amount = P + (P * R * T) / 100
Therefore, the total amount required to repay the loan is $P + ($P * R * T) / 100.
To find the total amount required to repay the loan, we need to calculate the interest and add it to the original loan amount.
Step 1: Calculate the interest.
Interest = Principal × Rate × Time
In this case, the principal is the loan amount, the rate is the interest rate, and the time is the loan duration in years. We need to convert the loan duration from months to years by dividing it by 12.
Let's say the loan amount is $P, the interest rate is R%, and the loan duration is N months. The time in years would be N/12.
Interest = P × R/100 × (N/12)
Step 2: Add the interest to the principal loan amount.
Total repayment amount = Principal + Interest
Total repayment amount = P + (P × R/100 × (N/12))
Therefore, the total amount required to repay the loan is P + (P × R/100 × (N/12)).
To find the total amount required to repay the loan, we need to calculate the interest on the borrowed amount and add it to the principal.
The formula to calculate simple interest is:
Interest = Principal * Rate * Time
Let's assign the given values to the variables:
Principal = borrowed amount
Rate = interest rate per year
Time = loan term in years
Since the interest rate is given as a percentage, we need to convert it to a decimal. For example, if the interest rate is 8%, we convert it to 0.08 (by dividing it by 100).
Now, let's calculate the interest using the formula above.
Interest = Principal * Rate * Time
To find the total amount required to repay the loan, we add the interest to the principal.
Total Amount = Principal + Interest
Please provide the values for the borrowed amount, loan term, and interest rate, and I'll calculate the total amount required to repay the loan.