Final answer:
The total amount of money you will pay back on a loan of $1,000 for 4 years at an annual interest rate of 8% is $1,320.
Step-by-step explanation:
To calculate the total amount of money you will pay back on a loan, you can use the formula:
Total Amount = Principal + (Principal * Interest Rate * Time)
In this case, the principal is $1,000, the interest rate is 8% (or 0.08), and the time is 4 years. Substituting these values into the formula, we get:
Total Amount = 1,000 + (1,000 * 0.08 * 4)
Total Amount = $1,000 + $320
Total Amount = $1,320