The initial amount borrowed is: $900
The annual interest rate is: 7%
The time period in years is: 6
With this information we can culculate that if the annual interest rate is 7%, the interest in 1 year will be given by calculating the 7% out of $900.
For this, we divide 900 by 100 and multiply by 7:
[tex]\frac{900}{100}\times7=9\times7=63[/tex]The interest per year is: $63
Since it is for 6 years, now we multiply the yearly interest by the number of years:
[tex]63\times6=378[/tex]After 6 years, you will pay $378 of interest.
To find how much you will pay altogether, we add this to the initial amount:
[tex]900+378=1278[/tex]Answer: $1,278
