Question

If you borrow $250 for three years an annual interest rate of 18% what is the total amount of money you will pay back

Answer 1

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$250\\ r=rate\to 18\%\to (18)/(100)\dotfill &0.18\\ t=years\dotfill &3 \end{cases} \\\\\\ A = 250[1+(0.18)(3)]\implies A=250(1.54) \implies A = 385`

Answer 2

Assuming the interest is compounded annually and there are no additional fees, the total amount of money you will pay back after three years would be $406.85. This can be calculated using the formula for compound interest:

A = P(1 + r/n)^(n*t)

where
A = the total amount you will pay back
P = the principal amount borrowed = $250
r = the annual interest rate = 18%
n = the number of times the interest is compounded per year = 1 (since it's compounded annually)
t = the time period in years = 3

Plugging in the values, we get:

A = $250(1 + 0.18/1)^(1*3) = $406.85