Answer:
The size of the repayment check is $21,868.50.
Step-by-step explanation:
The repayment check is going to be:
R = Principal + Interest
The principal is $19,221. We have to find the value of the interest.
The interest can be calculated as simple interest, given by the following formula:
[tex]I = P*r*t[/tex]
In which P is the principal, r is the annual interest rate, in decimal, and t is the time, in years.
In this problem, we have that:
[tex]P = 19,221[/tex], [tex]r = 0.097[/tex]
The time is 17 months. However, we must convert this value to years. Each year has 12 months. So 17 months is [tex]\frac{17}{12} = 1.42[/tex] years. So [tex]t = 1.42[/tex]
The interest value is:
[tex]I = P*r*t[/tex]
[tex]I = 19,221*0.097*1.42[/tex]
[tex]I = 2647,50[/tex]
The size of the repayment check is:
R = Principal + Interest
[tex]R = P + I[/tex]
[tex]R = 19,221 + 2647,50[/tex]
[tex]R = 21,868.50[/tex]
The size of the repayment check is $21,868.50.
