Answer
Part A: $\$2,549.25$
Part B: $33,425.25 in 18 months
Work Step by Step
Part A: This is the formula for simple interest, where I is the interest, P is the principal, r is the rate, and t is the time in years.
$I=prt$
Read the question and pull out the pertinent information.
$P=\$30,900,r=5.5\%=0.055,t=1.5$ years
She will need to pay $\$2,549.25$ in interest.
$I=(30900)(0.055)(1.5)=2549.25$
Part B: She must pay back the original amount with interest.
$I+P=total=30900+2549.25=33449.25$
She must pay the bank $33,449.25 in 18 months.
