Question

If $87,495 is borrowed for 7 years at an annual simple interest rate of 8.355%, what is the total amount that must be repaid?

Answer 1

$138,666.45

Explanation:

Answer 2

$138,666.45

Explanation:

I = Prt, where

I = simplest interest = $87, 495

r = anual rate = 8.355% = 0.08355

t = time = 7 years

I = 87,495 * 0.08355 *7 = 51,171.45075 ≈ $51, 171.45

What is the total amount that must be repaid?

The money they have to be returned are the borrowed P, and the interest I.

P +I = 87,495 + 51, 171.45 = $138,666.45