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Mark borrowed $600 at an intrest rate of 8% per year for 4 years. How much simple intrest will he have to pay?

1 Answer

4 votes

Answer:

He will have to pay $192 in simple interest.

Explanation:

This is a simple interest problem.

The simple interest formula is given by:

E = P*I*t

In which E is the interest, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.

In this problem, we have that:

P = 600, r = 0.08, t = 4

So

E = P*I*t = 600*0.08*4 = 192

He will have to pay $192 in simple interest.

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