A loan of $15,000 was repaid as follows: $8000 in 4 months,$150 in 6 months and a payment of $X in 9 months which will fully pay off the loan.If the rate of simple interest on the loan is 10%,what is the value of X according to the Merchant's rule?
A)$7637.92
B)$7641.67
C)$7661.88
D)$7700.83

Question

Quizplus · Accepted Answer

Using the Merchant's Rule, we can set up the equation:
$8000(1 + 10\cdot \frac{4}{12}) + $150(1 + 10 \cdot \frac{6}{12}) + $X(1 + 10 \cdot \frac{9}{12}) = $15000
Simplifying and solving for X, we get:
X = $\frac{15000 - 9187.50 - 1657.50}{1.075} \approx $7637.92
Therefore, the best choice is (A).

A Loan of $15,000 Was Repaid as Follows: $8000 in 4