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A company borrows $13,000 at 5% for 90 days. Find (a) the amount of interest due and (b) the total amount that must be paid after 90 days. (a) The interest due is $ (Simplify your answer. Do not round until the final step. Then round to the nearest cent as needed.)

Respuesta :

We have to use the simple interest formula

[tex]I=P\times r\times t[/tex]

Where P = 13,000, r = 5% (0.05), t = 90 (0.25 years). Let's replace these values to find the interest

[tex]I=13,000\times0.05\times0.25=162.50[/tex]

(a) The amount of interest is $162.50.

(b) The total amount that must be paid after 90 days is $13,162.50.

Because we have to add the total interest with the amount borrowed.

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