Question

Rosey borrows $7,900 and agrees to pay it back in 7 years. If the simple interest rate is 4%, find the total amount she pays back. Hint: I = Prt

Answer 1

The total amount she has to pay back would be $10,112.

Explanation:

So first of all you want to start by finding what P, r and t would be.

P = Principal amount ($)

r = interest rate (%)

t = time

Once I found all of those I put them into the equation (l = Prt) and solved. After that I had to add that to the amount Rosey borrowed because we wanted to find the total amount she has to pay back. That is how I came up with $10,112. All my work is provided in the attached screenshot. :)

Have a great day!

Answer 2

We are given the formula

I = PRT where I is the interest, P is the principle, r is the rate and t is the time in years

I = 7900 * (.04) * 7

I =2212

The interest paid is 2212

We want to find the total amount she pays back, which is the interest plus the principle

2212+7900

10112

The total amount paid back is $10112