Question

Malik borrowed $8,000 to buy a new boat. He will pay off the loan after 4 years by paying back the principal plus 6.5% simple interest. How much will Malik pay back altogether?

Answer 1

$10,080

Explanation:

Answer 2

`\bf ~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$8000\\ r=rate\to 6.5\%\to (6.5)/(100)\dotfill &0.065\\ t=years\dotfill &4 \end{cases} \\\\\\ A=8000[1+(0.065)(4)]\implies A=8000(1.26)\implies A=10080`