Answer:
$ 180,000
Step-by-step explanation:
All we are being asked to do in this question is take the simple interest, given a principle value of $100,000, with 8 percent interest each year over a course of 10 years. This is given the simple interest formula P( 1 + rt ).
Simple Interest : P( 1 + rt ),
P = $ 100,000 ; r = 8% ; t = 10 years,
100,000( 1 + 0.08( 10 ) ) = 100,000( 1 + 0.8 ) = 100,000( 1.8 ) = 180,000
Therefore you will have to pay back a total of $ 180,000
