Question

You borrow $20,500 from a bank that charges an interest rate of 9.5%. After 5 years, what is the total amount that you will have to pay back?

Answer 1

the total amount that should have to pay back is $30,237.50

Explanation:

The computation of the total amount that should have to pay back is as follows:

Amount = Simple interest + borrowed amount

= ($20,500 × 9.5% × 5) + $20,500

= $9,375.50 + $20,500

= $30,237.50

hence, the total amount that should have to pay back is $30,237.50