Question

6. Taylor plans to borrow $4,500 from the bank

to purchase a used vehicle. If he borrows the
money at a rate of 4% interest for 2 years,
what is the total amount he will have to pay
back to the bank?

Please Step by step explanation.

Answer 1

Explanation:

To calculate the total amount Taylor will have to pay back to the bank, we need to find the interest amount and add it to the original loan amount. The formula for finding the interest is:

I = Prt

Where I is the interest, P is the principal (original loan amount), r is the interest rate, and t is the time. Plugging in the values, we get:

I = 4,500 * 0.04 * 2 = 360

The total amount Taylor will have to pay back to the bank is:

4500 + 360 = $4860

So, Taylor will have to pay back $4860 to the bank.