Question

A bank offers an annual simple interest rate of 8% on home improvement loans. Tobias borrowed $17,000 over a period of 2 years. How much did he repay altogether?

Answer 1

Hello,

shall we begin?

Information:
c = present value = $ 17,000
tax : 8% a.a. = 8/100 = 0,08 (coefficient)
time or period : 2 years
Simple Interest Rate

j = cit
j = 17,000 * 0,08 * 2
j = 2,720

m = c + j
m = 17,000 + 2,720
m = 19,720

Answer: $ 19,720