Your answer is incorrect.
Omar takes out a loan for his college tuition from a bank that charges simple interest at an annual rate of . His loan is for for 11 months. Assume
each month is of a year. Answer each part below.
Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas.
(a) Find the interest that will be owed after 11 months.
(b) Assuming Omar doesn’t make any payments, find the amount owed after 11 months.
,
(bi37.48

Ask by Gibbs Davison. in the United States

Mar 13,2025

Question

Your answer is incorrect.
Omar takes out a loan for his college tuition from a bank that charges simple interest at an annual rate of . His loan is for for 11 months. Assume
each month is of a year. Answer each part below.
Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas.
(a) Find the interest that will be owed after 11 months.
(b) Assuming Omar doesn’t make any payments, find the amount owed after 11 months.
,
(bi37.48

Ask by Gibbs Davison. in the United States

Mar 13,2025

UpStudy AI · Accepted Answer

To find the interest that will be owed after 11 months, we can use the formula for simple interest:

$$ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} $$

Given:
- Principal ($$ P $$) = $2900
- Annual interest rate ($$ r $$) = 8.95%
- Time ($$ t $$) = 11 months

First, we need to convert the time from months to years:
$$ t = \frac{11}{12} \text{ years} $$

Now, we can calculate the interest:
$$ \text{Interest} = 2900 \times 0.0895 \times \frac{11}{12} $$

Let's calculate the interest.
Calculate the value by following steps:
- step0: Calculate:
  $$\frac{2900\times 0.0895\times 11}{12}$$
- step1: Multiply the terms:
  $$\frac{2855.05}{12}$$
- step2: Convert the expressions:
  $$\frac{\frac{57101}{20}}{12}$$
- step3: Multiply by the reciprocal:
  $$\frac{57101}{20}\times \frac{1}{12}$$
- step4: Multiply the fractions:
  $$\frac{57101}{20\times 12}$$
- step5: Multiply:
  $$\frac{57101}{240}$$
The interest that will be owed after 11 months is $237.9208.

Now, to find the amount owed after 11 months, we need to add the interest to the principal amount:
$$ \text{Amount owed} = \text{Principal} + \text{Interest} $$

Let's calculate the amount owed.
Calculate the value by following steps:
- step0: Calculate:
  $$2900+237.9208$$
- step1: Add the numbers:
  $$3137.9208$$
The amount owed after 11 months is $3137.9208.

Therefore, the answers are:
(a) The interest that will be owed after 11 months is $237.9208.
(b) The amount owed after 11 months is $3137.9208.
The interest owed after 11 months is $237.92, and the total amount owed is $3,137.92.

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