Solve the problem.
-Hannah borrowed $45,338 at 4.5% simple interest for 22 months. How much will the interest amount to? What is the total amount that she will have to pay back at the end of 22 months?
Round answers to the nearest cent if necessary.
A) $3570.37; $48,908.37
B) $3771.82; $49,109.82
C) $3740.39; $49,078.39
D) $3910.40; $49,248.40

Question

Quizplus · Accepted Answer

To calculate the interest, use the formula I = PRT, where I is the interest, P is the principal amount ($45,338), R is the annual interest rate (4.5% or 0.045), and T is the time in years (22 months = 22/12 years). So, I = $45,338 * 0.045 * (22/12) = $3740.39. The total amount to pay back is the principal plus interest, which is $45,338 + $3740.39 = $49,078.39.

Solve the Problem. -Hannah Borrowed $45,338 at 4.5% Simple Interest for 22 Months