The annual interest rate for a customer’s loan of $425 is 15.75%. What is the total dollar amount to be repaid on the loan, including principle and interest, for the entire year?
425 * 1.1575 = ?
491.72
To calculate the total dollar amount to be repaid on the loan for the entire year, we need to consider both the principal amount and the interest. The formula to calculate the total repayment amount is:
Total Repayment = Principal + Interest
First, let's calculate the interest:
Interest = Principal * (Annual Interest Rate / 100)
= $425 * (15.75 / 100)
= $66.94 (rounded to the nearest cent)
Now, we can calculate the total repayment amount:
Total Repayment = Principal + Interest
= $425 + $66.94
= $491.94
Therefore, the total dollar amount to be repaid on the loan, including principle and interest, for the entire year is $491.94.