Question

You borrow $500 to buy a computer. The simple interest rate is 15%. You pay off the loan after 4 years. How much do you pay for the loan?

Answer 1

Its $800 because to find interest u can use the formula I=PRT p is principal which is 500 times r which is rate-15/100(=15%) times 4

so the interest is 500×15/100×4=300
then u add 300 to 500 because the interest adds more money to the loan