Question

I=PRT

Courtney borrowed $7,500 for 4 years at an annual interest rate of 8%.

Part A: How much interest will she pay on the loan?



Part B: What is the total balance after the 4 years?

Answer 1

A 600 b 12000 I think

Answer 2

Part A: $2,400

Part B: $9,900

First, you need to find how much interest she is paying annually by taking the 8% and finding out what is 8% of $7,500. To do this, we can set two fractions up side by side, x/7,500 and 8/100. The denominators mean 100% of 7,500 is 7,500. The numerators mean that x is 8% of 7,500.

So to find x, we can cross multiply 7,500 and 8, giving us 60,000. Then we can divide 60,000 by 100, to give us 600. So x=600. 600 is how much interest costs for 1 year.

Now, to find how much interest is for 4 years, all we have to do is multiply 600 by 4. This gives us 2400. So, 4 years of interest costs her $2,400.

Her total balance after the 4 years is just the 4 year interest plus the amount borrowed. So 2,400 + 7,500. Giving us $9,900.