Question

Franco borrows $400 and will pay 4% simple interest.

Write an equation to answer each question.

A. What will be the amount of interest if Franco pays back the loan in 1 year?

B. What will be the amount of interest if he pays back the loan in 2 years?

C. If Franco pays off the loan in 2 years, what is the total amount he will pay the lender?

Answer 1

17,520

Explanation:

4% of 400 = 16.

Now for question A there is 365 days in a year.

365 x 16 = 5840 .

Question B we do 365 + 365 = 730, for two years.

730 x 16 = 11,680.

Question C we will add our answers for the total amount.

11,680 + 5,840 = 17,520.