This morning you borrowed $3,900 at 7.75% interest. You are to repay the loan principle plus all of the loan interest in one lump sum two years from today. How much will you have to pay in two years?

Question

Quizplus · Accepted Answer

To find the total amount to be paid, use the formula for simple interest: Total = Principal + (Principal * Rate * Time). Here, Total = $3,900 + ($3,900 * 0.0775 * 2) = $4,527.90, which rounds to $4,527.92.

This Morning You Borrowed $3,900 at 7