Question

The annual interest rate for a customer’s loan of $425 is 15.75%. What is the total dollar amount to be repaid on the loan, including principle and interest, for the entire year?

Answer 1

425 * 1.1575 = ?

Answer 2

491.9375

Answer 3

491.94

Answer 4

[AI-generated answer — Explain Bot]

To calculate the total dollar amount to be repaid on the loan, including principal and interest, for the entire year, you need to consider both the principal amount and the interest.

First, let's calculate the interest amount by multiplying the principal amount by the annual interest rate (in decimal form).

Interest = Principal * Annual Interest Rate
Interest = $425 * 0.1575

Next, add the interest amount to the principal amount to get the total amount to be repaid.

Total amount to be repaid = Principal + Interest
Total amount to be repaid = $425 + (Interest calculated above)

Now, let's calculate the interest:
Interest = $425 * 0.1575
Interest = $66.94 (rounded to the nearest cent)

Finally, add the principal and interest together to find the total dollar amount to be repaid:

Total amount to be repaid = $425 + $66.94
Total amount to be repaid = $491.94

Therefore, the total dollar amount to be repaid on the loan, including principal and interest, for the entire year is $491.94.