Question

If you borrow $400 for 3 years atan annual interest rate of 4%, howmuch will you pay altogether?

Answer 1

Simple interes formula

$i=P\cdot r\cdot t$

Simple interest i by multiplying the principal P by the rate r by the number of time periods t.

P = $400

r = 4%

t = 3y

$i=400\cdot4\text{ \%}\cdot3$$i=48\text{ \ }$

The total amount would be $448