Solve the problem.
-Josh makes a $2500, 4% simple interest personal loan to his friend Sean for a period of 7 years. When Sean settles his loan at the end of the 7 years, how much money, in total, must he pay Josh? The formula for simple
Interest is I = prt.
A)$700
B)$72,500
C)$2528
D)$3200

Question

Quizplus · Accepted Answer

The total amount Sean must pay Josh is calculated using the simple interest formula I = prt, where p = principal amount ($2500), r = annual interest rate (4% or 0.04), and t = time in years (7). So, I = $2500 * 0.04 * 7 = $700. The total amount paid back is the principal plus interest, which is $2500 + $700 = $3200.

Solve the Problem. -Josh Makes a $2500, 4% Simple Interest Personal Loan to Personal