Final answer:
Annie will pay back a total of $8,684 after 8 years on a $5,300 loan with a simple interest rate of 8%.
Step-by-step explanation:
To find the total amount Annie has to pay back after borrowing $5,300 at a simple interest rate of 8% over 8 years, we use the formula to calculate simple interest:
Interest = Principal × rate × time.
In this case:
- Principal = $5,300
- Rate = 8% per year = 0.08 (as a decimal)
- Time = 8 years
Plugging these values into the formula gives:
Interest = $5,300 × 0.08 × 8.
Interest = $3,384.
The total amount paid back is the sum of the principal and the interest, so:
Total amount = Principal + Interest
Total amount = $5,300 + $3,384
Total amount = $8,684.
Therefore, Annie will pay back a total of $8,684.