Question

How much will I have to pay back in total if I borrow $100 000 , pay 8% simple interest each year, and take 10 years to pay it back?

Answer 1

$180,000

Explanation:

A = P(1 + rt)

First, converting R percent to r a decimal

r = R/100 = 8%/100 = 0.08 per year.

Solving

A = 100000(1 + (0.08 × 10)) = 180000

A = $180,000.00

The total amount accrued, principal plus interest, from simple interest on a principal of $100,000.00 at a rate of 8% per year for 10 years is $180,000.00.