The annual interest rate for a customer’s loan of $675 is 19.25%. What is the total dollar amount to be repaid on the loan, including principle and interest, for the entire year?
675 * 1.1925 = ?
lost how do I get an answer
To find the total dollar amount to be repaid on the loan, including principal and interest, we need to calculate the interest amount and add it to the principal amount.
The principal amount is $675.
To find the interest amount, we calculate:
Interest = Principal * Rate
where Rate is the annual interest rate expressed as a decimal.
In this case, the annual interest rate is 19.25%, which is equivalent to 0.1925 in decimal form.
So, we calculate the interest as:
Interest = $675 * 0.1925
Interest = $129.94 (rounded to the nearest cent)
To get the total dollar amount to be repaid on the loan, we add the principal amount and the interest amount:
Total amount = Principal + Interest
Total amount = $675 + $129.94
Total amount = $804.94 (rounded to the nearest cent)
Therefore, the total dollar amount to be repaid on the loan, including principal and interest, for the entire year is $804.94.