# Finance

The average cost for a vacation is \$1,050. If a family borrows money for the vacation at an interest rate of 11.9% for 6 months,what is the total cost of the vacation including the interest on the loan?

1. 👍 0
2. 👎 0
3. 👁 865
1. You want to calculate the interest on \$1050 at 11.9% interest per year after 6 month(s).

The formula we'll use for this is the simple interest formula, or:

Where:

* P is the principal amount, \$1050.00.
* r is the interest rate, 11.9% per year, or in decimal form, 11.9/100=0.119.
* t is the time involved, 6....month(s) time periods.
* Since your interest rate is "per year" and you gave your time interval in "month(s)" we need to convert your time interval into "year" as well.

Do this by dividing your time, 6- month(s), by 12, since there's 12 months in 1 year.

* So, t is 0.5....year time periods.

To find the simple interest, we multiply 1050 × 0.119 × 0.5 to get that:

The interest is: \$62.48

Usually now, the interest is added onto the principal to figure some new amount after 6 month(s),
or 1050.00 + 62.48 = 1112.48. For example:

* If you borrowed the \$1050.00, you would now owe \$1112.48

* If you loaned someone \$1050.00, you would now be due \$1112.48

* If owned something, like a \$1050.00 bond, it would be worth \$1112.48 now.

1. 👍 3
2. 👎 1
2. Thanks!

1. 👍 1
2. 👎 0
3. nice, i like your numbers

1. 👍 1
2. 👎 0

## Similar Questions

1. ### Math

Peaceful Travel Agency offers vacation packages. Each vacation package includes a city, a month, and an airline. The agency has 2 cities, 2 months, and 3 airlines to choose from. How many different vacation packages do they offer?

2. ### English II

Which of these sentences contains an oxymoron? A. Mr. Keynes was a workaholic who found vacations to be about as relaxing as six rounds wrestling with an alligator. B. Despite his desire to travel during his week off, Mr. Keynes

3. ### math

Antoine went on vacation. His room cost \$115.62 each night. His flight there cost \$45.70. His flight home cost \$32.49. He averaged \$15.00 per day on food. On the first day Antoine won \$75.00. On the last day he lost \$25.00. If he

4. ### English

1. Where did you visit during the summer vacation? 2. What did you visit during the summer vacation? (Which one is correct, #1 or #2?) (Instead of 'during' can we use other prepositions?) What did you do through the summer

1. ### Math help

Laura family is going on a vacation they will drive 4,180 miles over the next two weeks about how many miles will they drive an average each week ? Plz help

2. ### math

lopez spent 1/3 of his vacation money for travel and 2/5 of his vacation money for lodging. He spent \$1100 for travel and lodging. What is the total amount of money he spent on his vacation?

3. ### Math

(Note: Hello! I'm having trouble with this problem, and I don't need the answer, but I just want to know HOW to solve this word problem. Any help is much appreciated!) Nina has some money saved for a vacation she has planned. -The

4. ### math

you are driving to a vacation spot that is 1500 miles away. Including rest stops, it takes you 42 hours to get to the vacation spot. You estimate that you drove at an average speed of 50 miles per hour. How many hours were you not

1. ### math

To ensure that you do not have a total consumption budget, which two categories should be added to your budget? A. savings and checking B. savings and miscellaneous C. savings and vacation D. vacation and miscellaneous

2. ### MAT 201

The number of vacation days taken by employees of a company is normally distributed with a mean of 14 days and a standard deviation of 3 days. For the next employee, what is the probability that the number of days of vacation

3. ### Math

The circle graph to the right shows how the Miller family spends their income. How much money do the Millers spend on vacation each year? Rent:35% Utilities:4% Miscellaneous:15% Food:24% Vacation:10% Savings:12% Please Answer As

4. ### statistics

during the month of July, an auto manufacturer gives its production employees a vacation period so it can tool up for the new model run. In surveying a simple random sample of 200 production workers, the personnel director finds