Answered

Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Get detailed answers to your questions from a community of experts dedicated to providing accurate information. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

Nolan Walker decided to buy a used snowmobile since his credit union was offering such low interest rates. He borrowed $2,700 at 3.5% on December 26, 2019, and paid it off February 21, 2021. How much did he pay in interest? (Assume ordinary interest and no leapyear.) (Use Days in a year table.) (Do not round intermediate calculations. Round your answer to the nearest cent.)

Interest Paid?

Sagot :

Using the formula for simple interest, it is found that he paid $119.87 in interest.

The simple interest formula is given by:

[tex]E = PIt[/tex]

  • E is the amount of interest earned.
  • P is the principal(the amount of money invested).
  • I is the interest rate(yearly, as a decimal).
  • t is the time, in years.

In this problem:

  • Borrowed $2,700, thus [tex]P = 2700[/tex]
  • Interest rate of 3.5%, thus [tex]I = 0.035[/tex]
  • From December 26, 2019 to February 21, 2021, there were 423 days, thus the time in years is [tex]t = \frac{423}{365} = 1.2685[/tex]

Thus, the interest paid was of:

[tex]E = PIt = 2700(0.035)(1.2685) = 119.87[/tex]

$119.87.

A similar problem is given at https://brainly.com/question/9593067

We appreciate your time. Please come back anytime for the latest information and answers to your questions. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.