Final answer:
Aldo will owe a total of $432 after four years.
Step-by-step explanation:
In this scenario, Aldo borrows $400 for a summer trip with no payments until four years. The lender charges simple interest at an annual rate of 2%. To calculate the total amount Aldo will owe after four years, we can use the formula:
Total amount owed = Principal + Simple Interest
Substituting the given values, we have:
Total amount owed = $400 + ($400 imes 2% imes 4)
Simplifying, we get:
Total amount owed = $400 + $32
Total amount owed = $432
So, after four years, Aldo will owe a total of $432.