If you borrow $1,700 for 4 years at 5% annual simple interest, how much must you repay at the end of the 3 years? Round your answer to the nearest dollar.

Question

If you borrow $1,700 for 4 years at 5% annual simple interest, how much must you repay at the end of the 3 years? Round your answer to the nearest dollar. ​

Quizplus · Accepted Answer

The simple interest formula is I = PRT, where P is the principal ($1,700), R is the rate (0.05), and T is the time (4 years). The interest is $1,700 * 0.05 * 4 = $340. The total repayment is the principal plus interest: $1,700 + $340 = $2,040.

If You Borrow $1,700 for 4 Years at 5% Annual