Question

Emilio borrows $1200 from a bank with 8.5% simple interest per year. How much will he have to pay back TOTAL in 2 years? Responses $1,404

Answer 1

Emilio will have to pay back a total of $1404.

Step-by-step explanation:

To calculate the total amount Emilio will have to pay back in 2 years, we can use the formula for simple interest: I = P(1 + r * t), where I is the total amount, P is the principal amount borrowed, r is the interest rate, and t is the time in years. In this case, P = $1200, r = 8.5%, and t = 2 years. Plugging in these values, we get:

I = $1200(1 + 0.085 * 2)

= $1200(1 + 0.17)

= $1200(1.17)

= $1404

Therefore, Emilio will have to pay back a total of $1404.