Question

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?

Answer 1

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