if you borrow $500 for 4 years at an annual interest rate of 6%, how much will you pay altogether? $?
if you borrow $500 for 4 years at an annual interest rate of 6%, 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=$500$, $r = 0.06$ (since $6%=0.06$), and $t = 4$ years. $I=Prt=500\times0.06\times4$ $I = 500\times0.24=$120$
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=500+120=$620$
Answer:
$620$