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What is the total intrest on a 4 year term loan of $1700 with a simple annual intrest of 8%

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Final answer:

The total interest on a 4-year term loan of $1700 at a simple annual interest rate of 8% would be $544.

Step-by-step explanation:

The question asks what the total interest on a 4-year term loan of $1700 with a simple annual interest rate of 8% would be. To calculate the simple interest, the formula is Interest = Principal × Rate × Time. Applying the formula:

  • Principal (P) = $1700
  • Rate (R) = 8% or 0.08 (as a decimal)
  • Time (T) = 4 years

Interest (I) = P × R × T

Interest (I) = $1700 × 0.08 × 4

Interest (I) = $544

Therefore, the total interest on the loan after 4 years would be $544.

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