Question

Robert gets a loan from his bank.

he agrees to borrow £6000 at a fixed annual simple interest rate of 7%.
he also agrees to pay the loan back over a 10 year period.

how much money in total will he have paid back at the end of 10 years?

Answer 1

the total amount that should be paid back at the end of 10 years is £10,200

Explanation:

The total amount that should be paid back at the end of 10 years is shown below:

= Borrowed amount + simple interest

= £6000 + (£6000 × 0.07 × 10)

= £6000 + £4,200

= £10,200

Hence, the total amount that should be paid back at the end of 10 years is £10,200