A bank offers an annual simple interest rate of 8% on home improvement loans. Tobias borrowed $17,000 over a period of 2 years. How much did he repay altogether?
17000 x 0.08 x 2 = 2720
add the amount borrowed and amount of interest.
17000 + 2720 = $19,720
19,720
To calculate how much Tobias repaid altogether, we need to find the total amount including both the principal amount (the amount borrowed) and the interest.
The formula for calculating simple interest is:
Interest = Principal x Rate x Time
First, we need to calculate the interest accrued over the two-year period.
Interest = $17,000 x 0.08 x 2
Next, we calculate the principal and interest combined:
Total amount repaid = Principal + Interest
Total amount repaid = $17,000 + (Interest calculated above)
Now let's calculate the interest:
Interest = $17,000 x 0.08 x 2 = $2,720
Finally, we can find the total amount repaid:
Total amount repaid = $17,000 + $2,720 = $19,720
Therefore, Tobias repaid a total of $19,720 altogether over the two-year period.
I = PRT
I = 17000 * 0.08 * 2
Add the interest to the principle.
What do you get?