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If you borrow $5,200 for 6 years at an annual interest rate of 5%, what is the total amount of money you will pay back?

User Johnthuss
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Final answer:

To calculate the total amount of money you will pay back, use the formula Total Amount = Principal + (Principal x Rate x Time). In this case, the total amount would be $6,760.

Step-by-step explanation:

To calculate the total amount of money you will pay back, you need to find the total loan amount including interest. The formula for simple interest is:

Total Amount = Principal + (Principal x Rate x Time)

In this case, the principal is $5,200, the interest rate is 5% (0.05 in decimal form), and the time is 6 years. Plugging these values into the formula:

Total Amount = $5,200 + ($5,200 x 0.05 x 6) = $5,200 + $1,560 = $6,760

So, the total amount of money you will pay back is $6,760.

User James Gardiner
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