Question

Find the amount paid for the loan. $4800 at 9.9% for 4 years

Answer 1

The amount paid for loan is $ 6700.8

Solution:

Given that,

Principal = $ 4800

rate of interest = 9.9 %

number of years = 4 years

Use the simple interest formula

Find the interest:

$Interest = \frac{p \times n \times r}{100}$

Where, p is the principal and n is number of years and r is rate of interest

$Interest = \frac{4800 \times 9.9 \times 4}{100}\\\\Interest = 48 \times 9.9 \times 4\\\\Interest = 1900.8$

Find the amount:

Amount = principal + interest

Amount = 4800 + 1900.8 = 6700.8

Thus the amount paid for loan is $ 6700.8