Question

A bank offers an annual simple interest rate of 9% on home improvement

loans. Tobias borrowed $20,000 over a period of 4 years. How much did
he repay altogether?

Answer 1

Tobias repayed a total of $7,200.

Explanation:

If Tobias borrowed $20,000, and the annual interest rate is 9% of this per year, then we need to find 9% of 20,000.

20,000 x 0.09 = 1,800

Therefore, the yearly interest rate is $1,800. Now, we need to multiply this by 4.

1,800 x 4 = 7,200

Therefore, Tobias repayed a total of $7,200.

Hope this helps! :D