Respuesta :
Answer:
Camels has to pay $42 more as interest
Step-by-step explanation:
We are given that Carmela borrows $400 and will pay 5.25% yearly simple interest.
Principal = $400
Rate of interest = 5.25%
Time = 2 years
Formula :[tex]SI = \frac{P \times T \times R}{100}[/tex]
So, [tex]SI =\frac{400 \times 2 \times 5.25}{100}[/tex]
SI=42
She borrows the money for 4 years instead of 2 years,
So,[tex]SI =\frac{400 \times 4 \times 5.25}{100}[/tex]
SI=84
Difference in interests = 84-42 = 42
Hence Camels has to pay $42 more as interest
