How to solve percentage proportions involving mixed number percentage?

[newslang22]

Hello, I've been trying to figure how to set up/solve this word problem for a while now but I just don't know what to do...

Norell Di Loreto started a technology services business in her home. She borrowed $27,000 to set up her office and advertise her business. The loan is for 24 months at 7 3/4% simple interest. What is the total amount due on the loan.

Don't really know how to set this equation up.. Any help is appreciated.

 

[HallsofIvy]

First, "7 and 3/4 percent" or 7.75% is just a "business" way of saying .0775. "7 and 3/4 percent" of something is just .0775 times that something. So "7 and 3/4 percent" of $27000 is (.0775)(27000)= $2092.50 interest.

Now, percent interest on a loan is always stated "per year". Because this loan is for two years, the total interest is (2)(2092.50)= $4185. Of course, the $27000 loan must also be paid back so a total of $27000+ $4185= $31185 will be due at the end of two years.