Question

Malik borrowed $8,000 to buy a new boat. He will pay off the loan after 4 years by paying back the principal plus 6.5% simple interest. How much will Malik pay back altogether?

A. $520 B. $2,080 C. $8,000 D. $10,080

Answer 1

the answer is D - 10, 080

Answer 2

Answer: D. $10,080

Explanation:

The formula to find the simple interest is given by :-

`S.I.=Prt`, where P is principal amount , r is rate of interest ( in decimal ) and t is time period.

Given : Principal amount = $8,000

The rate of interest = 6.5% = 0.065

Time period= 4 years

Then , the simple interest will be :-

`S.I.=8000*0.065*4=2080`

Hence, the amount which Malik pay back altogether =
`P+S.I.=8000+2080=\$10,080`