Question

15]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 willMalik pay back altogether?$520$2,080$8,000$10,080

Answer 1

First let us find the interest Malik would pay after borrowing the money. This is calculated as

`\begin{gathered} I=(P* R* T)/(100) \\ \\ \text{Where I = simple interest, R = the interest rate = 6.5 percent } \\ \text{ T= time = 4 years and P = principal = 8,000} \\ I=(8000*6.5*4)/(100) \\ \\ I\text{ = 80}*6.5*4 \\ I=\text{ 2,080 dollars } \end{gathered}`

The total money Malik would pay back is

Amount = Principal + Interest

Amount = 8,000 + 2,080 = $10,080