00:01
In this problem, our job is to take the given loan and to calculate, first of all, the interest, and secondly, the total amount repaid on the loan.
00:10
So we are told that it is a loan at 8 .75%.
00:16
This is simple interest.
00:19
The amount borrowed is $25 ,000.
00:26
And the loan runs from april 5, 2022 to march of the next year.
00:39
I should say march 9th of the next year.
00:46
So with this information, we first want to use the simple interest formula to calculate the interest.
00:54
Total interest i is just the principal times the rate times the time.
01:01
Where the principal p is in dollars, the rate is in decimal, and the time is in years.
01:09
So first we need to calculate this time.
01:11
We'll calculate the number of days, and then we will convert that to years.
01:15
One way to do this is to say if we had gone from april 5th around april 5th, that would be 365 days.
01:24
Then we can subtract how many days it is from march 9th until april 5th.
01:29
There are 22 days left in march plus another 5 in april.
01:33
So we have to subtract 27...