The total money she repays to the bank is $1297.2.
Given,
Amanda takes out a loan of $1,200 from a bank.
The bank charges 5.4% interest a year.
She borrows the money for 1.5 years.
We need to find the total amount she repays to the bank after 1.5 years.
we have,
Loan amount = $1200
Bank interest rate per year = 5.4%
So,
The interest amount per year:
= 1200 X (5.4/100)
= $64.8
If,
1 year = $64.8
1/2 year = 1/2 x 64.8
1/2 year = $32.4
In 1.5 years the interest amount will be:
1.5 years = 1 year + half-year
= $64.8 + $32.4
= $97.2
The total money she needs to pay to the bank after 1.5 years is:
= loan amount + 1.5 interest amount
= $1200 + $97.2
= $1297.2
Thus if she borrows the $1200 for 1.5 years with a yearly interest of 5.4%, she needs to repay $1297.2.
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