Question

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

Answer 1

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