# What is the the principal plus the interest for \$300 borrowed at 6% for 1 year and \$5,000 borrowed at 7.5% for 6 months?

justaguide | College Teacher | (Level 2) Distinguished Educator

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\$300 borrowed for 1 year at 6% incurs an interest of \$300*0.06 = \$18. The total amount including the principal and the interest is \$318.

\$5,000 borrowed at 7.5% for 6 months incurs an interest of \$5000*0.075/2 = 187.5. The total amount including the principal and the interest is \$5187.5

The amount in the first case is \$318 and in the second it is \$5187.5

revolution | College Teacher | (Level 1) Valedictorian

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The formula for simple interest is:

simple interest= (prinicipal amount * interest rate * period)/100

1) simple interest= (300*6*1)/100= \$18. Totsl amt.= \$318

2) simple interest= (5000* 7.5*1/2)/100 = \$187.50 Total amt.= \$5187.50

janelle73077 | Teacher | eNotes Newbie

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The formula for simple interest is

Interest = Principal x rate x time

1)  \$300 x .06 x 1 = \$18 interest for a total of \$318.00

2)  \$5000 x .075 x .5 = \$187.50 interest for a total of \$5187.50