if you borrow $7,900 for 5 years at an annual interest rate of 4%, what is the total amount of money you…
if you borrow $7,900 for 5 years at an annual interest rate of 4%, what is the total amount of money you will pay back?
Answer
Answer:
$9480$
Explanation:
Step1: Calculate the simple - interest
$I = Prt$, where $P = 7900$, $r=0.04$, $t = 5$. $I=7900\times0.04\times5=7900\times0.2 = 1580$
Step2: Calculate the total amount
$A=P + I$. $A=7900+1580 = 9480$