travis wants to borrow money to start a racquetball club at his school. he convinced the athletic department…

travis wants to borrow money to start a racquetball club at his school. he convinced the athletic department to loan him $2,500 to purchase equipment and rent a practice facility. travis agreed to an interest rate of 7%, and to pay back the money at the end of the year. how much money will travis have to pay back to the athletic department?\n$2,500\n$2,750\n$2,675\n$2,425

travis wants to borrow money to start a racquetball club at his school. he convinced the athletic department to loan him $2,500 to purchase equipment and rent a practice facility. travis agreed to an interest rate of 7%, and to pay back the money at the end of the year. how much money will travis have to pay back to the athletic department?\n$2,500\n$2,750\n$2,675\n$2,425

Answer

Explanation:

Step1: Calculate the interest amount

The formula for simple - interest is $I = Prt$, where $P$ is the principal amount, $r$ is the interest rate, and $t$ is the time. Here, $P=$2500$, $r = 0.07$ (since $7%=0.07$), and $t = 1$ year. So, $I=2500\times0.07\times1=175$.

Step2: Calculate the total amount to be repaid

The total amount $A$ to be repaid is the sum of the principal $P$ and the interest $I$. So, $A=P + I=2500+175 = 2675$.

Answer:

$2,675$