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vagabundo [1.1K]
3 years ago
13

Owen has a loan for $3700 at a rate of 5% annually. If the interest is not compounded, what is the total amount of repayment if

the loan is for 7 years? A) $1295.00 B) $3700.00 C) $3885.00 D) $4995.00
Mathematics
2 answers:
lutik1710 [3]3 years ago
8 0

Answer: The total amount of repayment is $4995 (option D).

Step-by-step explanation:

Hi, to solve this problem we have to calculate the value of the interest for each year.

So:

  • $3700 x 0.05 = $185

We have calculated the value of the interest for each year. The next step is to multiply by 7 years.

  • $185 x 7 =$1295

Finally, we simply add the result to the value of the loan:

  • $3700+$1295= $4995

The total amount of repayment is $4995 (option D).

Feel free to ask for more if it´s necessary or if you did not understand something.

VLD [36.1K]3 years ago
7 0
Owen's repayment loan for 7 years is D)$4995.00
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