if you borrow $500 for 6 years at an annual interest rate of 7%, how much will you pay altogether? $?
if you borrow $500 for 6 years at an annual interest rate of 7%, how much will you pay altogether? $?
Answer
Explanation:
Step1: Calculate the interest
Use the simple - interest formula $I = Prt$, where $P=$500$, $r = 7%=0.07$, and $t = 6$ years. $I=Prt=500\times0.07\times6$ $I = 500\times0.42=$210$
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=500 + 210=$710$
Answer:
$710$