A friend lent 17,600 to Dawn W. Monroe, the owner of a comic book store. She repaid the loan at the end of 6 months at 7 1/2% simple interest. What total amount did Dawn pay her friend?

Given that the loan was paid using a simple interest model, then the total amount of interest paid was:

I = (PRT) / 100

I=interest

P=principle=$17600

R=rate=7.5%

T=time=6/12=0.5 years

thus

I = (17600*7.5*0.5) / 100

=$660

Thus the total amount that Dawn paid will be:

Total=Principle+Interest

=17600+660

=$18260

If the term of the loan issued to Dawn W. Monroe, the owner of the comic book store, was 6 months; then the amount paid by Dawn would be 18,920. Calculated as 17,600 times 107.5 percent. (100 percent being the loaned amount, 7.5 percent being the interest amount).