Answer:
a.) $869.17
b.) $15769.17
a.) To find the interest, we will use the following formula:
[tex]I=Prt[/tex]
Where:
P = Money borrowed
r = annual rate of interest
t = time
From the problem, we know that:
P = $14,900
r = 10% = 0.1
t = 7 months × 1/12
Substitute these to the formula and we will get:
[tex]\begin{gathered} I=Prt \\ I=(\$14900)(0.1)(7\times\frac{1}{12}) \\ I=\$869.17 \end{gathered}[/tex]
b) Assuming the restaurant never made any payments, we just need to add the interest earned and the initial amount that they borrowed:
[tex]\$14900+\$869.17=\$15769.17[/tex]
