Question

ben borrows $18,500 at 5.2% simple interest per year .when he pays back the loan after 72 months what is the total amount he will end up paying

Answer 1

$24,272

Explanation:

The total amount due at the end of 6 years is ...

A = P(1 +rt) = $18,500(1 +.052·6) = $18,500·1.312 = $24,272

Ben will end up paying $24,272.