Question

Mr. Adeb takes out an $8,000 personal loan to restore his antique car. The bank loans him the money at 4.5% simple interest for 4 years.

a. How much will Mr. Adeb pay in interest? _

b. What is the total cost of the restoration including the interest? _

Mr. Adeb takes out an $8,000 personal loan to restore his antique car. The bank loans him the money at 4.5% simple interest for 4 years.

a. How much will Mr. Adeb pay in interest?

b. What is the total cost of the restoration including the interest?

Answer 1

A) $1440

B) $9440

Explanation:

A) 4.5% x $8000 = $360 x 4 years = $1440

B) $1440 + $8000 = $9440