Question
If you borrow \( \$ 2,400 \) for 4 years at an annual interest rate of \( 6 \% \), how much will you pay altogether?
Ask by Frank Salazar. in the United States
Feb 24,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
You will pay a total of \$2,976.
Solution
To solve the problem, we first calculate the interest accrued over 4 years and then add it to the initial borrowed amount.
Step 1: Calculate the annual interest.
Interest per year = Principal × Annual Interest Rate
= 2,400 × 0.06
= 144
Step 2: Calculate the total interest over 4 years.
Total Interest = Annual Interest × Number of Years
= 144 × 4
= 576
Step 3: Calculate the total amount to be paid.
Total Amount = Principal + Total Interest
= 2,400 + 576
= 2,976
Thus, if you borrow $2,400 for 4 years at an annual interest rate of 6%, you will pay a total of $2,976.
Answered by UpStudy AI and reviewed by a Professional Tutor
Like
error msg
Explain 
Simplify this solution The Deep Dive
To find out how much you'll pay altogether, you can calculate the total interest and then add it to the principal. The formula for simple interest is \( I = P \times r \times t \), where \( I \) is the interest, \( P \) is the principal, \( r \) is the rate (in decimal), and \( t \) is the time in years. In this case: - \( P = 2400 \) - \( r = 0.06 \) - \( t = 4 \) So, \( I = 2400 \times 0.06 \times 4 = 576 \). Now, add the interest to the principal: Total payment = \( 2400 + 576 = 2976 \). You will pay a total of \( \$ 2,976 \).
