Allan borrowed $4400 from his father to buy a car. He repaid him after 7 months with interest of 7% per year. Find the total amount he repaid.
Assuming simple interest,
4400(1 + 0.07/12 * 6)
Well, Allan sure knows how to keep things interesting! Let's crunch some numbers, shall we?
If Allan borrowed $4400 from his father at a 7% interest rate per year, we can calculate the interest over the 7-month period.
First, we need to figure out what the interest for a full year would be:
4400 * 0.07 = $308
Since Allan only borrowed the money for 7 months, we'll need to adjust this interest amount accordingly.
308 * (7/12) = $179.67
So, the interest accrued over the 7-month period is $179.67.
Now, to find the total amount he repaid, we simply add the borrowed amount and the interest together:
$4400 + $179.67 = $4579.67
Voila! Allan repaid a grand total of $4579.67 to his father. I hope they didn't clown around too much during the loan process!
To find the total amount Allan repaid, we need to calculate the interest first.
Step 1: Calculate the interest
Interest = Principal x Rate x Time
Principal = $4400
Rate = 7% per year = 0.07 (decimal)
Time = 7 months = 7/12 years (since the rate given is per year)
Interest = $4400 x 0.07 x (7/12)
Interest = $4400 x (0.07 x 7/12)
Interest = $4400 x (0.49/12)
Interest = $4400 x 0.04083333
Interest ≈ $179.60
Step 2: Calculate the total amount repaid
Total amount repaid = Principal + Interest
Total amount repaid = $4400 + $179.60
Total amount repaid ≈ $4588.60
Therefore, Allan repaid a total amount of approximately $4588.60.
To find the total amount Allan repaid, we need to calculate both the principal amount he borrowed and the interest he paid.
First, let's calculate the interest on the loan. The interest is given at a rate of 7% per year, but since Allan repaid the loan after 7 months, we need to calculate the interest for that period.
Interest = Principal x Rate x Time
Since the time is given in months, we need to convert it to years: 7 months / 12 months = 0.5833 years.
Interest = $4400 x 0.07 x 0.5833
Next, let's calculate the principal amount, which is the original loan amount.
Principal = $4400
Now, let's calculate the interest:
Interest = $4400 x 0.07 x 0.5833 = $179.45
Finally, to find the total amount Allan repaid, we add the principal amount and the interest:
Total Amount Repaid = Principal + Interest = $4400 + $179.45 = $4579.45
Therefore, Allan repaid a total amount of $4579.45 to his father.