Final answer:
Mr. Johnson will have to repay a total amount of $9,760, which consists of the original $8,000 borrowed plus $1,760 in simple interest after 4 years. The closest option provided is $9,800.
Step-by-step explanation:
Mr. Johnson borrowed $8,000 for 4 years to make home improvements at a 5.5% simple interest rate. To calculate the total amount he will have to repay at the end of the 4 years, we can use the formula for simple interest: Interest = Principal × Rate × Time. In this case, the Principal (P) is $8,000, the Rate (r) is 5.5% or 0.055 when written as a decimal, and the Time (t) is 4 years.
The calculation for the interest will be:
Interest = $8,000 × 0.055 × 4
Interest = $1,760
The total amount to be repaid is the sum of the principal and the interest. So, Mr. Johnson will repay:
Total Amount = Principal + Interest
Total Amount = $8,000 + $1,760 = $9,760
Thus, the closest option to the calculated amount is B) $9,800, which is likely a slight rounding error or typo in the options provided.