if you borrow $700 for 4 years at an annual interest rate of 8%, how much will you pay altogether? $?
if you borrow $700 for 4 years at an annual interest rate of 8%, how much will you pay altogether? $?
Answer
Explanation:
Step1: Calculate the interest
The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P=$700$, $r = 0.08$ (since $8%=0.08$), and $t = 4$ years. $I=Prt=700\times0.08\times4$ $I = 700\times0.32=$224$
Step2: Calculate the total amount
The total amount $A$ to be paid is the sum of the principal $P$ and the interest $I$. $A=P + I$ $A=700 + 224=$924$
Answer:
$924$