How much will I have to pay back in total if I borrow $100 000 , pay 5% simple interest each year, and take 20 years to pay it back?

Question

asked Sep 12, 2024 225k views

1 Answer

Dimiguel · Answer 1 · 2024-09-18T01:29:15+0000

Answer: $200,000

Explanation:

Simple interest equation:

A= P (1 +rt)

P= $100,000

r= 0.05%

t= 20 years

A= 100,000 (1+(0.05x20))

A= $200,000