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 will Malik pay back altogether?
i = prt.
i = 8000 x 0.065/yr x 4 yr = $2,080 interest paid
Total will be 8000 + i from above.
To find out how much Malik will pay back altogether, we need to calculate the total amount of interest first.
The formula to calculate simple interest is:
Interest = (Principal × Rate × Time)
Given:
Principal = $8,000
Rate = 6.5% (or 0.065 in decimal form)
Time = 4 years
Let's calculate the interest:
Interest = (8,000 × 0.065 × 4)
= $2,080
Now, to find out how much Malik will pay back altogether, we add the principal and the interest:
Total payment = Principal + Interest
= $8,000 + $2,080
= $10,080
Therefore, Malik will pay back a total of $10,080 altogether.
To find out how much Malik will pay back altogether, we need to calculate the simple interest on the loan and add it to the principal.
First, let's calculate the interest amount. The formula for calculating simple interest is:
Interest = Principal × Rate × Time
Where:
- Principal is the initial amount borrowed,
- Rate is the interest rate per period,
- Time is the number of periods.
In this case, Malik borrowed $8,000 and the interest rate is 6.5%. The time is given as 4 years. Let's substitute the values into the formula:
Interest = $8,000 × 0.065 × 4
= $2,080
The interest on the loan is $2,080.
Now, to find out how much Malik will pay back altogether, we need to add the principal and the interest:
Total repayment = Principal + Interest
= $8,000 + $2,080
= $10,080
Therefore, Malik will pay back a total of $10,080.