Mary is borrowing $3130 from a Loan Shark that will charge 4% APR. After being threatened for 18 weeks straight, Mary will pay the Loan Shark back.
How much interest will Mary pay for this loan?
How much will Mary have to pay the loan shark back?
I = PRT
I = 3,130 * 0.04 * 0.34615
I = ?
where did you get the 0.34615 from
18/52 = 0.34615
SOrry to keep asking but im still not understanding where the 52 is coming from?
nrvm
To calculate the interest and the total repayment amount for Mary's loan, we can use the formula for compound interest:
Interest = Principal * (1 + (rate/100))^time - Principal
Total Repayment Amount = Principal + Interest
Given:
Principal (loan amount) = $3130
Rate of interest = 4% (per annum)
Time = 18 weeks
First, let's calculate the interest:
Rate per week = 4% / 52 (since there are 52 weeks in a year)
Interest = Principal * (1 + (Rate per week/100))^Time - Principal
Interest = $3130 * (1 + (4 / 52 / 100))^18 - $3130
Interest = $3130 * (1 + 0.0007692308)^18 - $3130
Interest = $3130 * (1.0007692308)^18 - $3130
Interest = $3130 * 1.0138888889 - $3130
Interest ≈ $39.98 (rounded to two decimal places)
So, Mary will pay approximately $39.98 as interest for this loan.
Next, let's calculate the total repayment amount:
Total Repayment Amount = Principal + Interest
Total Repayment Amount = $3130 + $39.98
Total Repayment Amount ≈ $3169.98 (rounded to two decimal places)
Therefore, Mary will have to pay approximately $3169.98 back to the loan shark, including both the principal amount and the interest.