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?

Answer 1

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: $$r=10$$

2. Determine the principal amount and time: $$P=1600,t=6$$

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.