To find the total amount required to repay the loan, we need to calculate the interest on the loan and add it to the principal amount.
The interest on the loan can be calculated using the formula: Interest = Principal * Rate * Time
Principal = $6800
Rate = 8% or 0.08 (as a decimal)
Time = 8 months
Interest = $6800 * 0.08 * 8 = $4352
The total amount required to repay the loan is the principal amount plus the interest:
Total amount = Principal + Interest = $6800 + $4352 = $11152
Therefore, the total amount required to repay the loan is $11,152.
Tony opened a hot dog stand last April. He borrowed $6800 to pay for the stand and startup inventory, and he agreed to pay off the loan in 8 months at 8% simple interest. Find the total amount required to repay the loan.
1 answer
1 answer