Sal borrowed $2,000 for six months at 11.5% simple interest. What was
the total amount he had to repay?
a. $2,115
b. $2,105
c. $2,750
d. $2,187.50
The formula for simple interest is:
I = Prt
Where,
I = Interest
P = Principal (amount borrowed)
r = Rate (in decimal form)
t = Time (in years)
In this problem, we have:
P = $2,000
r = 0.115 (11.5% expressed as a decimal)
t = 6/12 = 0.5 (6 months expressed as a fraction of a year)
Plugging these values into the formula:
I = P*r*t
I = $2,000 * 0.115 * 0.5
I = $115
So Sal had to pay $115 in interest.
To find the total amount he had to repay, we add the interest to the principal:
Total = Principal + Interest
Total = $2,000 + $115
Total = $2,115
Therefore, the answer is (a) $2,115.