Question

4. Mitch took out a school loan for $24,000. The interest rate on the loan was 8%.

Mitch paid off the loan in just 5 years. How much did he pay altogether?
24000 0.08.5
p24000
R=0.08
T5 years
1920.5
u
9600+
I-

Answer 1

Mitch paid $ 33600 altogether

Solution:

Given that mitch took out a school laon for $ 24000

The interest rate on the loan was 8%

Number of years = 5

To find: total amount paid altogether

We can use simple interest to calculate the total amount

Total amount paid altogether = simple interest + principal amount

The simple interest is calculated as:

`\text { simple interest }=\frac{\text { principal } * \text {rate of interest } * \text {number of years}}{100}`

Plugging in values, we get

`\text { simple interest }=(24000 * 8 * 5)/(100)=240 * 8 * 5=9600`

Total amount paid altogether = simple interest + principal amount

Total amount paid altogether = 9600 + 24000 = 33600

Thus Mitch paid $ 33600 altogether