Question

Chris borrows £6000 at a simple interest rate of 10% per year.

He pays the money back after 4 years.
How much does he pay back in total?

Answer 1

9514 1404 393

Answer:

£8400

Explanation:

The amount due after t years is ...

A = P(1 +rt)

A = £6000(1 + 0.10·4) = £6000·1.40

A = £8400

Chris pays back £8400 in total.