429,068 views
9 votes
9 votes
If you borrow $700 for 5 years at

an annual interest rate of 7%, how
much will you pay altogether?

User Neil Foley
by
3.1k points

1 Answer

20 votes
20 votes

The amount you would pay altogether if you borrow $500 for 5 years at

an annual interest rate of 7% is $945.

How much would you pay altogether?

The amount you would pay altogether is the sum of the amount borrowed and the interest.

Total value of the debt = interest + amount borrowed

Interest = $700 x 7% x 5 = $245

Total value of the debt = $245 + $700 = $945

User Eeliya
by
2.8k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.