Question

Mary needed capital for her bakery. She borrowed $60 000 for 4 years at a simple interest rate of 8% per year. How much money will Mary pay at the end of 4 years?

Answer 1

$ 79600

Explanation:

interest=prt (p is the amount borrowed, r is the rate, t is the time)

p=60000 , r=8%=0.08 , t=4 years

interest=60000*0.08*4

A=19600

the amount paid at the end of 4 years: 60000+19600=$79600