5. gretchen borrowed $50 from her parents for 3 months. they charged her 14% interest. how much does she…

5. gretchen borrowed $50 from her parents for 3 months. they charged her 14% interest. how much does she need to pay her parents to pay off the loan?

5. gretchen borrowed $50 from her parents for 3 months. they charged her 14% interest. how much does she need to pay her parents to pay off the loan?

Answer

Explanation:

Step1: Calculate the interest

The formula for simple interest is (I = Prt), where (P=$50) (principal amount), (r = 14%=0.14) (annual interest rate), and (t=\frac{3}{12}=\frac{1}{4}) (time in years). [I=50\times0.14\times\frac{1}{4}] [I = 50\times0.035] [I=$1.75]

Step2: Calculate the total amount to pay

The total amount (A) to pay is the sum of the principal (P) and the interest (I). [A=P + I] [A=50+1.75] [A=$51.75]

Answer:

($51.75)