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15]Malik borrowed $8,000 to buy a new boat. He will pay off the loan after 4 years by paying back the principal plus 6.5% simple interest. How much willMalik pay back altogether?$520$2,080$8,000$10,080

Respuesta :

SOLUTION

First let us find the interest Malik would pay after borrowing the money. This is calculated as

[tex]\begin{gathered} I=\frac{P\times R\times T}{100} \\ \\ \text{Where I = simple interest, R = the interest rate = 6.5 percent } \\ \text{ T= time = 4 years and P = principal = 8,000} \\ I=\frac{8000\times6.5\times4}{100} \\ \\ I\text{ = 80}\times6.5\times4 \\ I=\text{ 2,080 dollars } \end{gathered}[/tex]

The total money Malik would pay back is

Amount = Principal + Interest

Amount = 8,000 + 2,080 = $10,080