Millie was granted a business loan of $52,000 to be repaid over a four-year period. Because the business is new and her personal credit is not perfect, she was given a simple interest rate of 9%. If Millie pays the loan back in four years, how much will she pay the bank all together?

Question

Jadyn Cuevas

Business

7 September, 04:41

Millie was granted a business loan of $52,000 to be repaid over a four-year period. Because the business is new and her personal credit is not perfect, she was given a simple interest rate of 9%. If Millie pays the loan back in four years, how much will she pay the bank all together?

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Answers (1)

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Tristin · Answer 1

She is to pay back $70,720

Explanation:

The total amount she is to pay back is simply the interest plus the principal. We have the principal and thus we need to calculate the interest.

Mathematically, S. I = PRT/100

P = $52,000

R = 9%

T = 4 years

S. I = (52000 * 9 * 4) / 100 = $18,720

Amount to be paid back is thus 52,000 + 18,720 = $70,720