Question

You borrow $6,191 from a bank which charges you 8.4% simple interest. Howamuch will you owe (total) after 6 and a half years?DO NOT ROUND ANY NUMBERS UNTIL YOUR FINAL ANSWER!Round your answer to the nearest cent.

Answer 1

The formula for simple interest is given by:

Simple Interest = Principal x interest rate x time period

SI = 6,191*0,084*6.5

SI= 3,380.286

Total amount: 3,380.286 + 6,191 = 9,571.286

Answer: $9,571.3