Question
If you borrow $1,600 for 6 years at an annual interest rate o 10%, what is the total amount of moneey you will pay back?
Answers
GPT-4o mini
To calculate the total amount of money you will pay back when you borrow $1,600 for 6 years at an annual interest rate of 10%, we can use the formula for simple interest, which is:
\[
\text{Total Amount} = P + I
\]
where:
- \( P \) is the principal amount (the initial amount borrowed),
- \( I \) is the interest.
The interest can be calculated using the formula:
\[
I = P \times r \times t
\]
where:
- \( r \) is the annual interest rate (in decimal form),
- \( t \) is the time in years.
1. Convert the interest rate into decimal form:
\[
r = 10\% = 0.10
\]
2. Determine the principal amount and time:
\[
P = 1600, \quad t = 6
\]
3. Calculate the interest:
\[
I = 1600 \times 0.10 \times 6 = 1600 \times 0.6 = 960
\]
4. Calculate the total amount to be paid back:
\[
\text{Total Amount} = P + I = 1600 + 960 = 2560
\]
Thus, the total amount of money you will pay back after 6 years is **$2,560**.
\[
\text{Total Amount} = P + I
\]
where:
- \( P \) is the principal amount (the initial amount borrowed),
- \( I \) is the interest.
The interest can be calculated using the formula:
\[
I = P \times r \times t
\]
where:
- \( r \) is the annual interest rate (in decimal form),
- \( t \) is the time in years.
1. Convert the interest rate into decimal form:
\[
r = 10\% = 0.10
\]
2. Determine the principal amount and time:
\[
P = 1600, \quad t = 6
\]
3. Calculate the interest:
\[
I = 1600 \times 0.10 \times 6 = 1600 \times 0.6 = 960
\]
4. Calculate the total amount to be paid back:
\[
\text{Total Amount} = P + I = 1600 + 960 = 2560
\]
Thus, the total amount of money you will pay back after 6 years is **$2,560**.