Question

Daniel LaRusso borrows $1,200 from a bank with 8% simple interest per year. How much will he have to pay back TOTAL (principal AND interest combined) in 2 years?

$150
$192
$1,350
$1,392

Answer 1

Explanation:

To calculate the total amount Daniel LaRusso will have to pay back in 2 years, we first need to calculate the interest he will owe on the loan.Simple Interest (I) = P * r * t

where P is the principal (the amount borrowed), r is the annual interest rate (expressed as a decimal), and t is the time (in years) for which the loan is borrowed.In this case, the principal is $1,200, the annual interest rate is 8%, and the time is 2 years.I = $1,200 * 0.08 * 2 = $192So, he will have to pay back a total of $1,200 (principal) + $192 (interest) = $1,392So, Daniel LaRusso will have to pay back a total of $1,392 in 2 years.

Answer 2

• D) $1392

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The amount of interest at 8% simple for 2 years is 16% of the loan:

• $1200* 16% =
• $1200*16/100 =
• $192

The total amount including both the principal and interest is:

• $1200 + 192 =
• $1392

Correct choice is D.