Question

$1,500 borrowed over 4 years

with an interest rate of 10%. What is the interest and the total value?

Answer 1

Total value: $2,100

Interest: $600

Explanation:

We'll use the simple interest rate: A=P(1+rt).

A= final amount

P=initial principal interest

r=annual interest rate

t=time (years)

So all we have to do is plug in the values given from the question into the formula, which would look like this:

A=1,500(1+.10x4)

A=1,500(1.40)

A=2,100

Then to find the interest we subtract the final amount (2,100) by the initial amount (1,500), 2,100-1,500=600.