Joyce took out a loan for $21,900 at 12 percent on March 18, 2007, which will be due on January 9, 2008. Using ordinary interest, Joyce will pay back on Jan. 9 a total amount:
Pt = Po + Po*r*t,
r = (12%/12) / 100% = 0.01 = Monthly % rate (MPR) expressed as a decimal.
t = 9.7 Mo. = Length of loan.
Pt=21,900 + 21,900*0.01*9.7=$24,024.30
post it.
To calculate the total amount Joyce will pay back on January 9, 2008, we first need to determine the interest accrued on the loan.
The formula for calculating simple interest is:
Interest = Principal x Rate x Time
Principal: $21,900
Rate: 12% or 0.12 (decimal form)
Time: We need to calculate the time difference between March 18, 2007, and January 9, 2008.
To calculate the time difference, we can subtract the starting date from the ending date. In this case, we have:
January 9, 2008 - March 18, 2007 = We have 1 year and 297 days (considering leap years).
Now, let's calculate the total time in years:
1 year + (297 days / 365 days) = 1.813 (approximately)
Using the formula for simple interest, we can calculate the interest accrued:
Interest = $21,900 x 0.12 x 1.813 = $4,464.72
To determine the total amount Joyce will pay back, we add the interest to the principal loan amount:
Total Amount = Principal + Interest = $21,900 + $4,464.72 = $26,364.72
Therefore, Joyce will pay back a total amount of $26,364.72 on January 9, 2008.