1. How much interest will Sara owe?
She will owe 5,966 dollars
2. How much will the payments be with a seven year agreement?
Sara will pay 21,666 dollars
The simple interest formula is as follows:
[tex]A=P(1+rt) \\ \\ \\ Where: \\ \\ A: \ is \ the \ Final \ Investment \Value \\ \\ P: \ is \ the \ Principal \ amount \ of \ money \ to \ be \ invested \\ \\ r: \ is \ the \ rate \ of \ interest \\ \\ t: \ is \ \ Number \ of \ Time \ Periods[/tex]
First, converting r percent to r a decimal
[tex]r = (5 \frac{3}{7})\%=(5+\frac{3}{7}))\%=\frac{38}{7}\% \\ \\ r=\frac{38/7}{100}=\frac{19}{350} \ per \ year[/tex]
Solving our equation:
[tex]A=15700 (1+\frac{19}{350}\times 7) \\ \\ A=15700(\frac{69}{50}) \\ \\ \boxed{A=\$21,666}[/tex]
So Sara will owe in interest the following amount of money:
[tex]I:Interest \\ \\ \\ I=21,666-15,700 \\ \\ \boxed{I=\$5,966}[/tex]
Finally, answering the questions:
1. How much interest will Sara owe?
She will owe 5,966 dollars
2. How much will the payments be with a seven year agreement?
Sara will pay 21,666 dollars
Simple interest: https://brainly.com/question/11911443
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