6. An amount of N$ 5132 is borrowed for 6 years at 7% simple interest. The total amount to be paid back after the six years is:
A. N$ 7287,44 B. N$ 2155,44 C. N$ 7701,75
To calculate the total amount to be paid back after 6 years, we use the formula for simple interest:
Total amount = Principal + (Principal * Rate * Time)
where Principal is the initial amount borrowed, Rate is the interest rate, and Time is the number of years.
In this case, the Principal is N$ 5132, the Rate is 7% (or 0.07 as a decimal), and the Time is 6 years.
Total amount = 5132 + (5132 * 0.07 * 6)
Total amount = 5132 + (3592.24)
Total amount = N$ 8724.24
Therefore, the correct answer is:
A. N$ 8724.24
To find the total amount to be paid back after six years, we need to calculate the simple interest and add it to the principal amount.
The formula to calculate simple interest is:
Interest = (Principal * Rate * Time)
Given:
Principal (P) = N$ 5132
Rate (R) = 7%
Time (T) = 6 years
Let's calculate the interest first:
Interest = (5132 * 7% * 6) = N$ 2148.24
Now, the total amount to be paid back is the sum of the principal and the interest:
Total amount = Principal + Interest
Total amount = 5132 + 2148.24
Total amount = N$ 7280.24
So, the correct option is A. N$ 7287,44.