A vendor borrowed $7,500 from their cooperative at 8% a year. If he paid at the end of 1 1/2 years, how much in all did he pay?
I am not sure if the answer is $8,400
I = prt
I = 7500 * 0.08 * 1,5
I = 900
Yep, $8400 is right!
To find out how much the vendor paid in total, we need to calculate the interest and add it to the borrowed amount.
Step 1: Calculate the interest:
Principal amount borrowed = $7,500
Interest rate = 8% per year
Time = 1 1/2 years = 1.5 years
Interest = Principal x Rate x Time
Interest = $7,500 x 0.08 x 1.5
Interest = $900
Step 2: Add the interest to the borrowed amount:
Total amount paid = Principal + Interest
Total amount paid = $7,500 + $900
Total amount paid = $8,400
Therefore, the vendor paid a total of $8,400 in 1 1/2 years.
To calculate how much the vendor paid in total, we need to calculate the interest earned on the loan amount. We can do this by using the formula:
Interest = Principal * Rate * Time
Where:
Principal is the loan amount ($7,500),
Rate is the annual interest rate (8% or 0.08),
Time is the duration of the loan (1 1/2 years or 1.5 years).
Substituting the given values into the formula, we can find the interest:
Interest = $7,500 * 0.08 * 1.5
To find how much the vendor paid in total, we add the initial loan amount to the interest earned:
Total payment = Principal + Interest
Let's calculate it step by step:
Interest = $7,500 * 0.08 * 1.5
Interest = $900
Total payment = $7,500 + $900
Total payment = $8,400
Therefore, the vendor paid a total of $8,400 in all. Your answer is correct.