Question

Vince borrows $900 to buy a couch. He will pay off the loan by paying 1.5% simple interest for 2 years. Vince incorrectly calculates the amount he will pay back using the expression below. 900 + 900(1.015 • 2) What is the correct amount Vince will pay back altogether? A.$903; Vince should have subtracted the first 900 from the amount
he will pay.

B. $913.50; Vince multiplied by the wrong number of years. C.$927; Vince wrote the wrong number to represent the interest rate.

D. $1,813.50; Vince forgot to add the initial$900 to the amount he will pay.

1. thuhuong
Step-by-step explanation:

2. Answer: The correct amount Vince will pay back altogether is $927 and this can be determined by using the simple interest formula. Step-by-step explanation: Given : Vince borrows$900 to buy a couch.
He will pay off the loan by paying 1.5% simple interest for 2 years.
Vince incorrectly calculates the amount he will pay back using the expression below. 900 + 900(1.015  2).
The following steps can be in order to determine the correct amount Vince will pay back altogether:
Step 1 – The formula of simple interest can be used in order to determine the correct amount Vince will pay back altogether.
Step 2 – The formula of simple interest is given below:
where A is the final amount, P is the principal amount, R is the interest rate, and T is the time.
Step 3 – Substitute the values of the known terms in the above expression.
A = 900(1 + 1.015  2)
Step 4 – Simplify the above expression.
A = \$927