Question

Brandy borrowed $12,500 from her dad and made an agreement to pay him back over 4 years at an annual simple interest of 3%. What is the TOTAL amount she will pay her dad back over the 4 years?

Answer 1

14,000

Explanation:

Step 1:

- 12,500x0.03=375

- 375x4=1500

1500 is the interest amount

but it's asking for the total so

Step 2:

- 12500+1500=14,000

- 14,000 is the TOTAL account balance.

Answer 2

1400 if not compounded

Explanation:

12500x.03