Question

4. Mitch took out a school loan for $24,000. The interest rate on the loan was 8%.

Answer 1

Mitch paid $ 33600 altogether

Solution:

Given that mitch took out a school laon for $ 24000

The interest rate on the loan was 8%

Number of years = 5

To find: total amount paid altogether

We can use simple interest to calculate the total amount

Total amount paid altogether = simple interest + principal amount

The simple interest is calculated as:

$\text { simple interest }=\frac{\text { principal } \times \text {rate of interest } \times \text {number of years}}{100}$

Plugging in values, we get

$\text { simple interest }=\frac{24000 \times 8 \times 5}{100}=240 \times 8 \times 5=9600$

Total amount paid altogether = simple interest + principal amount

Total amount paid altogether = 9600 + 24000 = 33600

Thus Mitch paid $ 33600 altogether