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4 votes
David borrows $1400 from the bank at an 8.5% simple interest rate per year. How

much will he have to pay back in total in 2 years?
A.$1638

B.$1625

C.$238

D.$225

User Panagiota
by
8.6k points

2 Answers

3 votes

Answer:

Figure out your monthly interest due by dividing your interest rate by 12. For example, an 8% interest rate loan would be . 007 (. 08 divided by 12).

Principle amount is $600 (P), rate of interest is 8\% per annum (R), and the number of years is 5 (N). Hence, here, the interest the man would be paying is $240 and the total money he'd be collecting at the end of 5-year tenure is $840.

User Dinusha
by
8.0k points
5 votes
P= 1400, R=2 8.5%, T=2

So…

1400 x (1+2x0.085) = $1638
User BLUEPIXY
by
8.2k points