To calculate the total amount paid altogether on a loan, you need to add the principal (borrowed amount) and the interest. In this case, the total amount paid will be $710.
To find out how much you will pay altogether, you need to calculate the total amount including both the principal (borrowed amount) and the interest. You can use the formula:
Total Amount = Principal + Interest
In this case, the principal is $500 and the interest rate is 7% per year. To calculate the interest, use the formula:
Interest = Principal × Rate × Tim
where the time is given as 6 years. Substituting the values, we get:
Interest = $500 × 0.07 × 6 = $210
Now, you can calculate the total amount:
Total Amount = Principal + Interest = $500 + $210 = $710
So, you will pay a total of $710 altogether.
The probable question may be:
If you borrow $500 for 6 years at an annual interest rate of 7%, how much will you pay altogether?