Question

Robert takes out a loan for $7200 at a 4.3% rate for 2 years. What is the total paid amount at the end of the loan?

Answer 1

The total amount paid at the end of Robert's 2-year loan at a 4.3% interest rate for the principal amount of 7200 is 7819.20. This includes the original loan amount plus the interest accrued over the 2 years.

Step-by-step explanation:

To calculate the total amount paid at the end of the loan that Robert takes for 7200 at a 4.3% interest rate for 2 years, we need to apply the formula for simple interest plus the principal amount. The formula for simple interest is I = P*r*t, where I is the interest, P is the principal amount, r is the annual interest rate (in decimal form), and t is the time in years.

• First, convert the interest rate from a percentage to a decimal by dividing by 100: 4.3% / 100 = 0.043.
• Next, calculate the interest: I = 7200 * 0.043 * 2 = 619.20
• Lastly, add the interest to the principal to find the total amount paid at the end of the loan: Total paid = Principal + Interest = 7200 + 619.20 = 7819.20.

The total amount paid at the end of the loan is 7819.20.

Answer 2

$7819.20

Step-by-step explanation:

total paid amount at the end of the loan= loan taken + interest on the loan

loan taken = $7200

interest on the loan can be determined using this formula

Interest = principal x intrest rate x time

7200 x 0.043 x 2 = $619.20

total paid amount at the end of the loan= $7200 + $619.20 = $7819.20