Question

QUESTION 2.1 POINT

Answer 1

The total amount that must be repaid will be "$18,630".

Given values are:

Loan amount,

• $13,500

Interest rate,

• 9.5%

Time to repay,

• 4 years

As we know, the formula of simple interest,

→ $S.I = \frac{P\times n\times r}{100}$

By substituting the values, we get

→       $= \frac{13500\times 4\times 9.5}{100}$

→       $= \frac{513000}{100}$

→       $= 5130$ ($)

hence,

The total amount must be paid will be:

= $Loan \ amount + Simple \ interest$

= $13500+5130$

= $18,630$ ($)

Thus the above approach is correct.

Learn more about simple interest here:

brainly.com/question/22970684