Craig borrows $1000 at 9% simple interest per year. When Craig pays the loan back 11 years later, what is the total amount that Craig ends up repaying?
1000x0.09x11=990
Well, it looks like Craig's interest has really added up! With simple interest, he ends up repaying a total of $990 on top of the original $1000 loan. So, in total, Craig ends up repaying $1990. That's a pretty expensive loan, but hopefully, he got some good use out of that money!
To calculate the total amount that Craig ends up repaying after 11 years with a 9% simple interest rate, you can use the formula:
Total amount repaid = Principal + (Principal x Interest Rate x Time)
Given that Craig borrowed $1000 and the interest rate is 9% per year, we can substitute these values into the formula along with the 11-year time period:
Total amount repaid = $1000 + ($1000 x 0.09 x 11)
Now we can calculate the total amount repaid:
Total amount repaid = $1000 + ($1000 x 0.99)
Total amount repaid = $1000 + $990
Total amount repaid = $1990
Therefore, Craig ends up repaying a total of $1990.
To find the total amount that Craig ends up repaying, we need to calculate the interest accumulated over the 11-year period and add it to the original loan amount.
To calculate the interest, we multiply the loan amount, the interest rate, and the number of years:
Interest = Loan Amount x Interest Rate x Number of Years
= $1000 x 0.09 x 11
= $990.
Therefore, the interest accumulated over the 11 years is $990.
To find the total amount repaid, we add this interest to the original loan amount:
Total Repayment = Loan Amount + Interest
= $1000 + $990
= $1990.
Therefore, the total amount that Craig ends up repaying is $1990.