Annie’s cafe borrows $6100 at 6% for 290 days. Find the total amount that must be repaid after 290 days. (Use a 365 day year.)

Question

Annie’s cafe borrows $6100 at 6% for 290 days. Find the total amount that must be repaid after 290 days. (Use a 365 day year.)

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    2021-09-04T16:51:12+00:00

    Given:
    amount borrowed $6,100
    interest rate 6% – assuming annual interest rate
    term – 290 days of a 365 day year.

    This is a simple interest computation.

    Interest = Principal * interest rate * term
    Interest = 6,100 * 6% * 290/365
    Interest = 290.79

    Total payment at the end of the 290 term would be $6,390.79. 

    Principal + interest → 6,100 + 290.79 = 6,390.79

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