How much would you repay the bank if you borrowed $7,900 at 4.3% annual interest for 6 years?
Pt = Po + rtPo,
Pt = 7900 + 0.043*6*7900,
Pt = 7900 + 2038.20 = $9938.20.
$9938.20
To calculate the total repayment amount for a loan, you can use the formula for compound interest:
Total Repayment = Principal + Interest
The principal is the initial amount borrowed, and the interest is the additional amount charged based on the interest rate and time period.
In this case:
Principal = $7,900
Interest Rate = 4.3% (or 0.043 as a decimal)
Time Period = 6 years
To calculate the interest, you can use the formula:
Interest = Principal * Interest Rate * Time Period
Plugging in the values:
Interest = $7,900 * 0.043 * 6
Next, add the interest to the principal to find the total repayment amount:
Total Repayment = Principal + Interest
Now, we can calculate the values:
Interest = $7,900 * 0.043 * 6 = $1,610.40
Total Repayment = $7,900 + $1,610.40 = $9,510.40
Therefore, you would need to repay the bank $9,510.40 if you borrowed $7,900 at a 4.3% annual interest rate for 6 years.