if you borrow $300 for 14 years at an annual interest rate of 4%, how much will you pay altogether? $?
if you borrow $300 for 14 years at an annual interest rate of 4%, how much will you pay altogether? $?
Answer
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=$300$, $r = 0.04$ (since $4%=0.04$), and $t = 14$ years. $I=Prt=300\times0.04\times14$ $I = 300\times0.56=$168$
Step2: Calculate the total amount
The total amount $A$ to be paid is the sum of the principal amount $P$ and the interest $I$. $A=P + I$ $A=300+168=$468$
Answer:
$468$