Respuesta :
Answer:
To calculate the total interest that Lucy will have to pay, we need to use the formula for simple interest: I = P * R * T, where I is the interest, P is the principal (the amount borrowed), R is the interest rate (as a decimal), and T is the time in years. Using this formula, we can calculate the total interest that Lucy will have to pay as follows:
I = P * R * T
I = $4000 * 0.05 * 2
I = $400
Therefore, the total interest that Lucy will have to pay is $400.
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To calculate the total repayment amount (including interest), we need to add the total interest to the original amount borrowed, which in this case is $4000. Therefore, the total repayment amount will be $4000 + $400 = $4400. This is the amount that Lucy will have to pay back to her parents at the end of the two-year period.
Step-by-step explanation:
Answer:
Total interest = $400
Total repayment (including interest) = $4,400
Step-by-step explanation:
Simple Interest Formula
[tex]\large\boxed{ \sf I = Prt}[/tex]
where:
- I = Total interest.
- P = Principal amount.
- r = Interest rate (in decimal form).
- t = Time (in years).
Given:
- P = $4,000
- r = 5% = 0.05
- t = 2 years
To find the total interest, substitute the given values into the formula and solve for I:
[tex]\implies \sf I=4000 \cdot 0.05 \cdot 2[/tex]
[tex]\implies \sf I=200 \cdot 2[/tex]
[tex]\implies \sf I=400[/tex]
Therefore, the total interest Lucy has to pay is $400.
The total repayment amount is the sum of the principal and the interest:
[tex]\implies \sf A=P+I[/tex]
[tex]\implies \sf A=4000 +400[/tex]
[tex]\implies \sf A=4400[/tex]
Therefore, the total repayment (including interest) is $4,400.
