Question

If you borrow $400 for 3 years atan annual interest rate of 4%, howmuch will you pay altogether?

Answer 1

Simple interes formula

`i=P\cdot r\cdot t`

Simple interest i by multiplying the principal P by the rate r by the number of time periods t.

P = $400

r = 4%

t = 3y

`i=400\cdot4\text{ \%}\cdot3`
`i=48\text{ \$}`

The total amount would be $448