Answer: $112.50 ; $4612.5
Step-by-step explanation:
a) Determine how much interest Christine paid at the end of 1 year.
This will be:
Simple interest = PRT/100
where
P = principal = $4500
R = rate = 2.5%
T = time = 1 year
Interest = (4500 × 2.5 × 1)/100
= 11250/100
= $112.50
b) Determine the total amount Christine will repay the bank at the end of 1 year.
Total amount = Principal + Interest
= $4500 + $112.50
= $4612.5
