Question

If you borrow $200 for 12 years atan annual interest rate of 2%, howmuch will you pay altogether?

Answer 1

Answer:

$248

Explanations:

Let the money borrowed be the Principal, P = $200

Interest rate, R = 2%

Number of years, T = 12 years

The total amount to pay back will be:

Amount = Principal + Interest

Let us calculate the Interest, using the formula:

`\begin{gathered} \text{Interest = }(PRT)/(100) \\ \text{Interest = }(200*2*12)/(100) \\ \text{Interest = 2}*2*12 \\ \text{Interest = 48} \end{gathered}`

Interest = $48

Amount = Principal + Interest

Amount = $200 + $48

Amount = $248

You will pay back $248 altogether