Question

If you borrowed $1450 to buy a used car at a rate of 10% interest and planned on paying it back in 4 years, what is the total amount you would pay back?

Answer 1

He will pay back $2030

Explanation:

Simple Interest = (Principal × rate × time)/100

Principal= $1450, rate = 10% and time is 4 years

Substitute the above info into the formula to get the interest

SI = (1450 × 10 × 4)/100

SI = 145 × 4

SI = $580

He will therefore pay back principal plus interest, which will be

$1450 + $580 = $2030