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John borrowed P15,000 for 2 years and 6 months, with simple interest at 9%. How much does he owe at the end of the time?

Respuesta :

jepessoa

Answer:

18,375

Explanation:

I'm not sure what kind of currency P is, but the calculations should be the same as if they were dollars.

future value for simple interest = principal x interest rate x time = 15,000 x 9% x 2.5 years = 3,375 (interests only)

the total amount of interests + principal = 15,000 + 3,375 = 18,375

the difference between simple and compound interest is that when interests compounds, earned interest will start earning more interest themselves. While when calculating simple interest, interests only accumulate but do not earn any further interests. E.g. the future value of this debt using compound interest = 15,000 x 1.09²°⁵ = 18,606.19

Tundexi

The amount that he owes at the end of the time is $18,375.

Simple interest = Principal  * Interest rate * Time

Simple interest = $15,000 x 9% x 2.5 years

Simple interest = $3,375.

Amount owed = Simple interests + Principal

Amount owed = $15,000 + $3,375

Amount owed = $18,375

Therefore, the amount that he owes at the end of the time is $18,375.

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brainly.com/question/19475971

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