You borrow $3200 to buy new kitchen appliances. The simple interest rate is 5%. You pay the loan off after 4 years. What is the total amount you paid for the loan?

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asked Feb 11, 2021 129k views

2 Answers

Hughgo · Answer 1 · 2021-02-13T18:13:06+0000

It’s $3840.

5% of 3200 is 160. The interest applies for 4 years (160 x 4 = 640), which adds onto the flat 3200, (640 + 3200 = $3840)