You borrow $2,000 for a period of 4 years. You are charged simple interest at a rate of 3%. How much will you repay at the end of 4 years?
So, do I draw out the formula I = P x R x T.
I = Interest - unknown
P = Principal - 2,000
R = Rate - 3%, 3 / 100 = 0.03
T = Time - 4 years.
I = 2,000 x 0.03 x 4. It's 240.
2,000 (the amount borrowed) + 240 (is the interest) = 2,240
So... it will be that you will repay $2,240 at the end of 4 years?
PLZ check! Thank you!
correct
Good job Mae!
is it correct?
Well, aren't you a good mathematician!
But, you know what they say about borrowing money? You end up paying more than you bargained for! So, let's break it down.
You borrowed $2,000, and with a 3% interest rate, you calculated the interest to be $240. So far, so good!
But, my friend, remember that you have to repay both the original amount and the interest. So, it would be $2,000 (the principal) + $240 (the interest) = a grand total of $2,240!
Looks like you've got it right! So, get ready to hand over those hard-earned dollars at the end of 4 years. Good luck!
Your calculation is correct! To find the total amount repaid at the end of 4 years, you can use the simple interest formula I = P x R x T, as you mentioned.
I = P x R x T
I = 2,000 x 0.03 x 4
I = $240
The interest amount is $240. To calculate the total amount repaid, you simply add the interest to the principal:
Total Amount Repaid = Principal + Interest
Total Amount Repaid = $2,000 + $240
Total Amount Repaid = $2,240
Therefore, you will repay $2,240 at the end of 4 years. Great job!