Question

If you borrow $300 for 7 years at

an annual interest rate of 9%, how
much will you pay altogether?

Answer 1

489$

Explanation:

0.09 * 300 = 27

27 * 7 = 189

300 + 189 = 489

Answer 2

If you borrow $300 for 7 years at an annual interest rate of 9%.

Finally, you will have to pay an amount of money:

A = principal x (1 + rate)^year

= 300 x (1 + 9/100)^7

= 548.41

Hope this helps!

:)