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I borrowed $400 to buy an MP3 player. I got a two-year loan, and the lender is charging 8% simple annual interest. How much money will I have to pay back?

User DotMorten
by
3.6k points

2 Answers

2 votes

Answer:

The Answer IS: 0.08 Just did the test

Explanation:

User Mattjvincent
by
3.6k points
7 votes

Answer:

$464

Explanation:

Amount to be repaid = loan amount + interest on the loan

Interest on the loan = loan amount x time x interest rate

loan amount = $400

Time = 2 years

interest rate = 8%

400 x 0.08 x 2 = $64

Amount to be repaid = $400 + $64 = $464

User Nitinkumar Ambekar
by
3.4k points