Question

suppose you paid off a $1,200 loan by paying $400 in principal each year plus 10 percent annual interest over a 3-year period. what is the total payment (interest plus principal) in year 3? multiple choice question.

Answer 1

$1,320

Step-by-step explanation:

the total payment is $1,320

This is because 10% of $400 is $40, so you add 400 and 40 to get the amount of money you pay each year. Then you multiply $440 by 3 to get the total you pay after 3 years :)