Multiple choice

John borrows $2500 at 7% simple interest and pays back after 4 years. What amount does he have to pay back?

  1. $3000
  2. $3200
  3. $3400
  4. $4400
  5. $5700
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple Interest = (P * R * T) / 100 = (2500 * 7 * 4) / 100 = 700. The total amount to pay back is 2500 + 700 = 3200.

AI explanation

Using the simple interest formula of principal multiplied by rate multiplied by time divided by 100, we calculate the interest as 2500 multiplied by 7 multiplied by 4 divided by 100, which equals 700. The total amount to be paid back is the sum of the principal and the interest, so 2500 plus 700 equals 3200. The amount he has to pay back is 3200.

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