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# Help with interest problem?

Jane Doe borrows $20,900 from her bank to open a bakery. She agrees to repay the money in 18 months with simple annual interest of 10.4%.

(a) How much must she pay the bank in 18 months?

(b) How much of the amount in part (a) is interest?

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- momLv 71 decade agoFavorite Answer
Jane Doe borrows $20,900 from her bank to open a bakery. She agrees to repay the money in 18 months with simple annual interest of 10.4%.

(a) How much must she pay the bank in 18 months?

(b) How much of the amount in part (a) is interest?

I = 20900(.104)(1.5)

I=3260.40

she will pay the bank $24,160.40

Interest is $3260.40

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