Question

If you borrow $2,400 for 4 years at an annual interest rate of 6%, how much will you pay altogether?

Answer 1

Answer:2,976

Explanation:

person above is correct

Answer 2

`\$2,976`

Explanation:

The simple interest formula is equal to

`A=P(1+rt)`

where

A is the Final amount owed

P is the amount of money borrowed

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=4\ years\\ P=\$2,400\\r=6\%=6/100=0.06`

substitute in the formula above

`A=2,400(1+0.06*4)`

`A=2,400(1.24)`

`A=\$2,976`