If you borrow $1000.00 at 6% for one year, how much interest will you owe. how much will you have to pay back
1,000 * 0.06 = 60
1,000 + 60 = ?
To calculate the interest owed on a loan, you would multiply the principal amount (the amount borrowed) by the interest rate and the time period.
In this case:
Principal amount (P) = $1000.00
Interest rate (R) = 6% = 0.06 (in decimal form)
Time period (T) = 1 year
To find the interest owed:
Interest (I) = P * R * T
= $1000.00 * 0.06 * 1
= $60.00
Therefore, you will owe $60.00 in interest.
To calculate the total amount that needs to be paid back, you would add the principal amount to the interest owed:
Total amount to be paid back = Principal + Interest
= $1000.00 + $60.00
= $1060.00
Therefore, you would need to pay back $1060.00 in total.