Question

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

Answer 1

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