A man uses a loan program for small businesses to obtain a loan to help expand his vending machine business. The man borrows $2

Question

3 years ago

9

6 comma 000 for 4 years with a simple interest rate of 1.4%. Determine the amount of money the man must repay after 4 years.

1 answer:

seraphim [82] · Answer 1 · 2022-01-07T06:28:48+03:00

Answer:

The ammount due at the end of the loan adds for $27,456

Explanation:

If the payment is in full at maturity, the man must pay the principal of 26,000 plus the interest during the period of 4 years.

It is important to notice that the loan is done at simple interest, so the interest does not capitalize.

$Ammount$-due = 26,000 * (1 + 0.014 * 4) = 27,456$

A man uses a loan program for small businesses to obtain a loan to help expand his vending machine business. The man borrows ​$2