Charlie borrowed \( \$1,500\) from his aunt. He plans to pay his aunt back in nine months. If he pays 4% interest on the loan, what is the total amount he will pay back in nine months?

\(\$1,545\)

Explanation

Find the amount of interest. For the time period, use 9/12, which equals 3/4, or 0.75. Multiply \(\$ 1,500 \times 0.04 \times 0.75=\$ 45\). Add to find the amount paid back. \(\$1,500 + \$45 = \$1,545\).

Visit our website for other GED topics now!