Question

if you borrow $1,600 for 6 years at an annual interest rate of 10%, what is the total amount of money you will pay back?

Explanation:

Step1: Calculate the simple - 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. Here, $P=\$1600$, $r = 0.10$ (since $10\%=0.10$), and $t = 6$ years. So, $I=1600\times0.10\times6$.
$I = 1600\times0.10\times6=960$

Step2: Calculate the total amount

The total amount $A$ to be paid back is the sum of the principal $P$ and the interest $I$. So, $A=P + I$.
$A=1600 + 960$
$A = 2560$

Answer:

$2560$