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?
I = Prt
I = 425 * 0.1575 * 1
I = $66.94
To find the total dollar amount to be repaid on the loan for the entire year, we need to calculate the total interest and add it to the principal amount.
First, let's find the interest amount. The annual interest rate is 15.75%, so we can convert it to a decimal by dividing it by 100: 15.75% ÷ 100 = 0.1575.
Next, we multiply the principal amount by the interest rate: $425 x 0.1575 = $66.94.
Now we can calculate the total amount to be repaid by adding the interest to the principal: $425 + $66.94 = $491.94.
Therefore, the total dollar amount to be repaid on the loan, including principal and interest, for the entire year is $491.94.