A man borrowed $3300 from a bank for 6 months. A friend was cosigner of the man's personal note. The bank...

Question

A man borrowed $3300 from a bank for 6 months. A friend was cosigner of the man's personal note. The bank collected 6 1/2% simple interest on the date of maturity.
a) How much did the man pay for the use of the money?
b) Determine the amount he repaid to the bank on the due date of the note.

SnapAndSolve AI · Accepted Answer

To find the interest paid, use the formula for simple interest: I = PRT, where P is the principal amount ($3300), R is the rate of interest (6.5% or 0.065), and T is the time in years (6 months = 0.5 years).

I = 3300 * 0.065 * 0.5 = $107.25

The man paid $107.25 for the use of the money.
The total amount repaid to the bank is the sum of the principal and the interest.

Total repayment = Principal + Interest = 3300 + 107.25 = $3407.25

The man repaid $3407.25 to the bank on the due date of the note.

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A man borrowed $3300 from a bank for 6 months. A friend was cosigner of the man's personal note. The bank...

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