if you borrow $2,000 for 7 years at an annual interest rate of 15%, what is the total amount of money you…
if you borrow $2,000 for 7 years at an annual interest rate of 15%, what is the total amount of money you will pay back?
Answer
Answer:
$4100$
Explanation:
Step1: Calculate simple - interest
$I = Prt$, where $P = 2000$, $r=0.15$, $t = 7$. $I=2000\times0.15\times7=2100$
Step2: Calculate total amount
$A=P + I$. $A = 2000+2100=4100$