Question

Tina borrows $4,000 at a simple interest rate of 2% and plans on paying their loan over 6 years. What is the total amount Tina will have to repay on both the loan and interest? *

Answer 1

$4480

Explanation:

Given

principal= $4000

rate= 2%= 0.02

time= 6 years

We know that the expression for simple interest is given as

Interest = PRT

solving for the interest we have

I=4000*0.02*6

I=480

Therefore Tina is paying an interest of $480

Tina will have to repay on both the loan and interest of

=4000+480

=$4480