Question

an online lending company is offering simple interest personal loans based on consumer credit scores. with your credit score, you can borrow $3900 for 7 years at an interest rate of 15.16% . how much money will you pay the lending company at the end of 7 years? round your answer to the nearest cent, if necessary.

Answer 1

To find the total amount you will pay the lending company at the end of 7 years, you can use the formula Total amount = Principal + Interest. The interest can be calculated using the formula Interest = Principal * Rate * Time. By substituting the given values and performing the calculations, the total amount is found to be $7953.36.

Step-by-step explanation:

To calculate the total amount of money you will pay the lending company at the end of 7 years, we can use the formula:

Total amount = Principal + Interest

Where:

• Principal is the amount borrowed, which is $3900.
• Interest is calculated using the formula:

Interest = Principal * Rate * Time

Now, let's substitute the given values into the formula:

Interest = $3900 * 0.1516 * 7

Calculating this gives us:

Interest = $4053.36

Finally, we can find the total amount:

Total amount = $3900 + $4053.36 = $7953.36

Therefore, you will pay the lending company $7953.36 at the end of 7 years.