Question

If you borrow $1,600 for 6 years at an annual interest rate of 10%, what is the total amount of money you will pay back?​

Answer 1

$2560 is the total amount to be paid back

Explanation:

This is Simple interest described in the question

P = Principal amount

= Amount of money borrowed

= $1600

R = Rate of interest

= 10% per year

= 10% per annum

T = Time period

= 6 years

Make sure the base units of R and T are the same:

S.I. = Simple Interest =
`(PRT)/(100)`

=
`((1600 Dollars)(10(Percent)/(Year))(6Years))/((100 Percent))`

= $960

This means:

Total amount to be paid back = P + S.I.

= $1600 + $960

= $2560