Dont I need more info for this Math problem??
posted by SDog on .
You borrow $2,000 at a rate of 3% for a period of 4 years. How much will you re-pay at the end of 4 years?
This is a 7th grade math question and I feel like it's a trick question. I am thinking that I should use the simple interest formula, but I know that most loans are not calculated with simple interest. We've been studying simple interest and compound interest but this question doesn't specify...what do you think?
Since the compounding frequency was not
given, you'll have to use simple interest.
P = Po + Po*r*t
P=2,000 + 2000*0.03*4=2000 + 240 = 2240.
Always show the Eq before plugging-in