Question

If you borrow $500 for 4 years at

an annual interest rate of 6%, how
much will you pay altogether?

Answer 1

Answer: $620

Explanation:

`(500)/(1)`×
`(4)/(1)`×
`(6)/(100)`=

Anything divided by one gives itself.

500*(4/1)*(6/100)

Anything divided by one gives itself.

500*4*(6/100)

Multiply 500 and 4 to get 2000.

2000*(6/100)

Reduce the fraction 6/100 to the lowest terms by extracting and canceling out 2.

2000*(3/50)

Express 2000×(3/50) as a single fraction.

`(2000*3)/(50)`

Multiply 2000 and 3 to get 6000.

6000/50

Divide 6000 by 50 to get 120.

120

Add 500 to 120 because it is just your interest rate

500+120=620

You then get your full payment and it is $620.

Answer 2

500×6/100×4=120 500+120=620