General Idea:
The formula to find the Amount 'A' that need to be paid after ' t ' years for a Principal ' P ' with a annual rate of interest ' r ' is given below:
[tex] A= P(1+r \cdot t) [/tex]
Applying the concept:
Annie's cafe borrows $6100 at 6% for 290 days.
From the above statement we can conclude,...
[tex] P= \$6100\\ \\ r=6\%\\ \\ t=\frac{260}{365} [/tex]
Substituting the values of P, r and t in the formula, we get...
[tex] A=6100 \cdot (1+6 \% \cdot \frac{260}{365} )\\ \\ A=6100(1+\frac{6}{100} \cdot \frac{260}{365} )=6100(1+\frac{1560}{36500} ) \approx 6361 [/tex]
Conclusion:
The total amount that must be repaid after 290 days is approximately [tex] \$6361 [/tex]
