Step-by-step explanation:
Amount borrowed=400
interest rate=4%
Amount of interest after x years =0.04XxX400=$16x
Total to be paid back=400+0.04X<em>x</em>X400=400+16(1)
1) the amount of interest.if Franco pays back the loan in x=1 years is
16x1=<u>$16</u>
2) the amount of interest,if Franco pay back the loan in x=2 years is,
16x2=<u>$32</u>
3) the amount of franco will pay the lender after 2 years will be
400+(16x2)=400+32=<u>$432</u>
