if you borrow $400 for 2 years at an annual interest rate of 15%, how much will you pay altogether? $?
if you borrow $400 for 2 years at an annual interest rate of 15%, 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=$400$, $r = 0.15$ (since $15%=0.15$), and $t = 2$ years. $I=Prt=400\times0.15\times2$ $I = 400\times0.3=$120$
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=400 + 120=$520$
Answer:
$520$