if you borrow $900 for 6 years at an annual interest rate of 7%, how much will you pay altogether? $?
if you borrow $900 for 6 years at an annual interest rate of 7%, 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=$900$, $r = 0.07$ (since $7%=0.07$), and $t = 6$ years. $I=Prt=900\times0.07\times6$ $I = 900\times0.42=$378$
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=900 + 378=$1278$
Answer:
$1278$