Answer:
He should pay $2,790.7.
Step-by-step explanation:
This is a simple interest problem.
The simple interest formula is given by:
[tex]E = P*I*t[/tex]
In which E is the amount of interest earned, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time, in years.
After t years, the total amount of money is:
[tex]T = E + P[/tex]
In this question:
Rate of 10%, so I = 0.1.
9 months, so [tex]t = \frac{9}{12} = 0.75[/tex]
How much should he pay for a note that will be worth $3,000 in 9 months?
We have to find P for which T = 3000. So
[tex]T = E + P[/tex]
[tex]3000 = E + P[/tex]
[tex]E = 3000 - P[/tex]
Then
[tex]E = P*I*t[/tex]
[tex]3000 - P = P*0.1*0.75[/tex]
[tex]1.075P = 3000[/tex]
[tex]P = \frac{3000}{1.075}[/tex]
[tex]P = 2790.7[/tex]
He should pay $2,790.7.
