Question

alicia borrows $800 from the bank for 5 years at 7% sinple interest. at the end of the loan, how much will she owe the bank?

Answer 1

total=principle+intereest

I=PRT

I=interest

P=principal

R=rate in decimal

T=time in years

in our case

P=800

R=7%=0.07

T=5

find I

I=PRT

I=(800)(0.07)(5)

I=280

total she owes is 800+280=$1080