Question

A bank offers an annual simple interest rate of 8% on home improvement loans. Tobias borrowed $17,000 over a period of 2 years. How much did he repay altogether?

I tried it and got an answer of $19,720. Am I correct?

A)$1,360 C)$18,360
B)$2,720 D)$19,720

Answer 1

The formula says
A=p(1+rt)
A=17,000×(1+0.08×2)
A=19,720

Answer 2

2 years is 24 month of payments

17000/24=708.33
708.33×0.08=56.67 (estimated)
56.67×24=1360.08
1360.08+1360.08+17000= $19,720.16

I got D