Question

Morgan's website development business was doing well and she wanted to lend the surplus earnings she made to her friend who was in need of money. She lent $2,790 at a simple interest rate of 3.40% p.a. to her friend on July 05, 2016.

calculate how much interest Morgan's friend had to pay on February 09, 2017.

What is the total repayment amount?

Answer 1

Amount lent on July 05,2016(Principal) = $2790

No of days loan provided from July 05,2016 to Feb 09,2017 = 220 days

- Calculating the amount of Interest to be paid on Feb 09,2017 using Simple Interest rate= Principal amount*Interest rate*No of days/365

= $2790*3.40%*220/365

= $57.18

- Total repayment amount = Principal amount + Interest amount

= $2790 + $57.18

= $2847.18

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