Asked by SDog

You borrow $2,000 at a rate of 3% for a period of 4 years. How much will you re-pay at the end of 4 years?
This is a 7th grade math question and I feel like it's a trick question. I am thinking that I should use the simple interest formula, but I know that most loans are not calculated with simple interest. We've been studying simple interest and compound interest but this question doesn't specify...what do you think?
$2000*.03*4=$240 +2000=$2240?

Answers

Answered by Henry
Since the compounding frequency was not
given, you'll have to use simple interest.

P = Po + Po*r*t
P=2,000 + 2000*0.03*4=2000 + 240 = 2240.

Always show the Eq before plugging-in
the values.
Answered by Ankita pramod adhau
Class 7th math
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