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Sagot :
Using simple interest, it is found that:
- John paid $12 in interest for the loan.
- The total amount that he paid the bank was of $887.
Simple Interest
Simple interest is used when there is a single compounding per time period.
The amount of money after t units of time in is modeled by:
[tex]A(t) = A(0)(1 + rt)[/tex]
In which:
- A(0) is the initial amount.
- r is the interest rate, as a decimal.
For this problem, the parameters are given as follows:
A(0) = 875, r = 0.0004273, t = 32.
Hence the amount paid is given by:
A(32) = 875 x (1 + 0.0004273 x 32) = $887.
The amount of interest is given by:
I = 887 - 875 = $12.
More can be learned about simple interest at https://brainly.com/question/25296782
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