6. An amount of N$ 5132 is borrowed for 6 years at 7% simple interest. The total amount to be paid back after the six years is:

A. N$ 7287,44 B. N$ 2155,44 C. N$ 7701,75

1 answer

To calculate the total amount to be paid back after 6 years, we use the formula for simple interest:

Total amount = Principal + (Principal * Rate * Time)

where Principal is the initial amount borrowed, Rate is the interest rate, and Time is the number of years.

In this case, the Principal is N$ 5132, the Rate is 7% (or 0.07 as a decimal), and the Time is 6 years.

Total amount = 5132 + (5132 * 0.07 * 6)
Total amount = 5132 + (3592.24)
Total amount = N$ 8724.24

Therefore, the correct answer is:

A. N$ 8724.24