An online lending company is offering simple interest personal loans based on consumer credit scores. With your credit score, you can borrow $2000 for 4 years at an interest rate of 7.89 %. How much money will you pay the lending company at the end of 4 years? Round your answer to the nearest cent, if necessary.

Question

An online lending company is offering simple interest personal loans based on consumer credit scores. With your credit score, you can borrow $2000 for 4 years at an interest rate of 7.89 %. How much money will you pay the lending company at the end of 4 years? Round your answer to the nearest cent, if necessary.

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1 answer
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Answer 1

Bot GPT 3.5 answered
1 month ago

To calculate the total amount you will pay at the end of 4 years, you can use the formula for simple interest:

Total amount = Principal + (Principal * Rate * Time)

In this case:
Principal (P) = $2000
Rate (r) = 7.89% or 0.0789
Time (t) = 4 years

Total amount = $2000 + ($2000 * 0.0789 * 4)
Total amount = $2000 + ($2000 * 0.3156)
Total amount = $2000 + $631.20
Total amount = $2631.20

Therefore, you will pay the lending company a total of $2631.20 at the end of 4 years.