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23 November, 05:17

Let's say that Jose borrows $200 for 2 years at a rate of 8% simple interest calculated annually. How much total will he have to pay back at the end of two years?

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  1. 23 November, 05:40
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    The formula is Interest = Principal * Rate * Time

    I = 200 * 2 * 0.08

    I = 400 * 0.08

    I = 32

    He would have to pay $232 in total.
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