Jessica borrowed $9,000 from the bank to purchase a used car.
The bank has given her an interest rate of 7.5 % annually for a period of
2 1/2 years.
What is the total amount she will have to pay back at the end of the loan?
To calculate the total amount Jessica will have to pay back at the end of the loan, we need to determine the interest on the loan and add it to the principal amount.
First, we need to find the interest on the loan. The interest is given at an annual rate of 7.5%. To calculate the interest for 2 1/2 years, we multiply the principal amount by the interest rate and the time in years:
Interest = $9,000 * 0.075 * 2.5 = $1,687.50
Next, we need to add the interest to the principal amount to find the total amount Jessica will have to pay back:
Total amount = Principal amount + Interest = $9,000 + $1,687.50 = $10,687.50
Therefore, the total amount Jessica will have to pay back at the end of the loan is $10,687.50.
To calculate the total amount Jessica will have to pay back at the end of the loan, we need to consider the principal amount and the interest.
Principal amount: $9,000
Interest rate: 7.5% annually
Loan period: 2 1/2 years
First, let's calculate the interest amount. The formula for calculating simple interest is:
Interest = Principal * Rate * Time
Interest = $9,000 * 7.5% * 2.5
Interest = $9,000 * 0.075 * 2.5
Interest = $1,687.50
Now, let's find the total amount Jessica will have to pay back by adding the principal and the interest:
Total amount = Principal + Interest
Total amount = $9,000 + $1,687.50
Total amount = $10,687.50
Therefore, Jessica will have to pay back a total amount of $10,687.50 at the end of the loan.