Question

If you borrow $900 for 6 years at

an annual interest rate of 7%, how
much will you pay altogether?
It’s not 378

Answer 1

$1278

Explanation:

First you would need to find out how much the annual interest rate is so you would find out what 7% of $900 is which is 63 meaning that there is an annual fee of $63 and since it was for 6 years you would multiply $63 times 6 to get 378 and then to find the total amount you would pay you have to add the interest to what you borrowed so you would do $900 + $378