Solve the problem. Assume that simple interest is being calculated in each case. Round the answer to the nearest cent
unless otherwise indicated.
-Annie's cafe borrows $5900 at 7% for 60 days. Find the total amount that must be repaid after 60 days. (Use a 365 day year.)

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Quizplus · Accepted Answer

The total amount to be repaid is calculated using the formula for simple interest plus the principal: Total Amount = Principal + (Principal * Rate * Time). Here, Principal = $5900, Rate = 7% (or 0.07 as a decimal), Time = 60/365 years (since it's for 60 days and using a 365-day year). So, Total Amount = $5900 + ($5900 * 0.07 * 60/365) = $5900 + $67.89 = $5967.89.

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