Question

8. Ben borrowed $800 at 9% simple interest for 2 years. What is the total

amount he must repay?
.
8.

Answer 1

After 2 years Ben will have to repay $992.

Step-by-step explanation:

Principal amount borrowed = $800

Time = 2 years

Rate of Interest = 9%

Now, SIMPLE INTEREST =
`(P * R * T)/(100)`

So, here S I =
`(800 * 9 * 2)/(100)`

or, Simple Interest on the principal amount = $144

Now, AMOUNT = PRINCIPAL + SIMPLE INTEREST

= $800 + $144

= $944

or, the Amount = $944

Hence, after 2 years Ben will have to repay $944 .