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How much will Barry pay Kim at the end of 4 years?

How much will Barry pay Kim at the end of 4 years?-example-1
User Mnish
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1 Answer

4 votes

From the question

Kim loaned Barry $15,860 at an interest rate of 16% for 4 years

This implies

Principal (P) = $15,860

Interest Rate (R) = 16%

Time (T) = 4years

We are to find the amount Barry will pay Kim at the end of 4years

First, we need to find the interest I, using


I=\frac{\text{PRT}}{100}

By substituting values we get


I=\frac{\text{ \$15860}*16*4}{100}

Simplifying the expression we have


\begin{gathered} I=\frac{\text{ \$1,015,040}}{100} \\ I=\text{ \$10150.40} \end{gathered}

Hence, the interest to be paid is $10,150.40

Next, we will find the Amount Barry will pay Kim at the end of 4years

Amount (A) is given as


A=P+I

Substituting values


\begin{gathered} A=\text{ \$15,860}+\text{ \$10,150.40} \\ A=\text{ \$}26,010.40 \end{gathered}

Therefore the Amount to be paid back is $26,010.40

User Hiemanshu Sharma
by
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