The total amount petra has to pay after 1 year is $ 209
The equation used is: Total amount to pay back = Amount Borrowed + Amount of Interest
Solution:
Given that,
Petra borrowed $ 200 for 1 year with simple interest rate 4.5 %
We are asked to find the amount that petra has to pay back after 1 year
Total to Pay Back = Amount Borrowed + Amount of Interest
Let us first calculate the amount of interest Petra has to pay for 1 year
Given that simple interest rate = 4.5%
The simple interest is given as:
[tex]\text { simple interest }=\frac{\text { principal } \times \text {rate} \text { of interest } \times \text { number of years }}{100}[/tex]
[tex]\text { simple interest }=\frac{200 \times 4.5 \times 1}{100}=2 \times 4.5=9[/tex]
Thus the amount of interest = $ 9
Total to Pay Back = Amount Borrowed + Amount of Interest
Total to Pay Back = 200 + 9 = 209
Thus the total amount petra has to pay after 1 year is $ 209
