Question

You take out a loan for$ 12,967.2 at a 4.5% simple interest rate per year for 6 years. what is the total amount of money will you have paid after 6 years? snow your work

Answer 1

Principal amount taken as loan = $12967.20
Rate of Interest at which the loan is taken = 4.5%
Time for which the loan is taken = 6 years
Then
Amount of loan that needs to be repaid = Principal [1 + (Rate * Time)]
= 12967.20 [ 1 + (4.5% * 6)]
= 1296.20 [ 1 + 0.27]
= 1296.20 * 1.27
= 1646.17
So the amount of loan that needs to be repaid is $1646.17. I hope the procedure of solving such problems is clear to you and in future you will be able to solve the problems on your own without taking any help.