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
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
1 answer