Respuesta :
how i looked at this was finding the interest total in 1 year which is $10. since he is paying it off at the next payment(in one month) divide 10 by 12 for the interest in one month add that $200 as that was the base starting price
Answer:
His final payment if the loan is paid off with the next payment is:
$ 200.83
Step-by-step explanation:
It is given that:
Roper Fox took out a simple interest loan at 5% interest for 12 months.
His previous balance is $200.
The interest on the loan that is to be paid on the previous balance is calculated as:
[tex]Interest=\dfrac{200\times 5\times 1}{12\times 100}\\\\\\Interest=0.83[/tex]
Hence, the final payment is:
Previous balance+Interest
= 200+0.83
=$ 200.83
Hence, the answer is:
$ 200.83
