Question

Question 2

Garcia borrowed $4,000 from his cousin
Susan at the rate of 8% per annum. He
repaid the amount after two years. How
much did he repay?
A. $640
B. $6,640
C. $4,640
D. $3,360

Answer 1

$4,640

Explanation:

because the calculation would equal that amount.

Answer 2

• C. $4640

Explanation:

Given:

• Borrowed amount P = $4000
• Interest rate r = 8% = 0.08
• Time t = 2 years

Amount to repay:

• A = P(1 + rt)
• A = 4000(1 + 0.08*2) = 4000*1.16 = 4640

Correct choice is C