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Taylor plans to borrow $4500 from the bank to purchase a used vehicle if he borrows the money at the rate of 4% interest for two years what is the total amount we will have to pay back to the bank

User YesIcan
by
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1 Answer

10 votes

Answer: $ 4860

Explanation:

Formula : Amount = P (1+rt) , P = principal value , r= rate of interest , t= time

Given ; P= $4500 , r = 4% = 0.04 , t = 2years

Total amount we will have to pay back to the bank =
4500(1+0.04* 2)


=4500(1+0.08)\\\\=4500(1.08)\\\\=\$ 4860

Hence, the total amount we will have to pay back to the bank = $ 4860

User NONEenglisher
by
5.6k points
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