if you borrow $800 for 10 years at an annual interest rate of 12%, how much will you pay altogether? $?
if you borrow $800 for 10 years at an annual interest rate of 12%, 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=$800$, $r = 0.12$ (since $12%=0.12$), and $t = 10$ years. $I=800\times0.12\times10$ $I = 960$
Step2: Calculate the total amount
The total amount $A$ to be paid is the sum of the principal $P$ and the interest $I$. $A=P + I$ $A=800 + 960$ $A = 1760$
Answer:
$1760$