Darien borrows $4265 to help pay for university tuition at an annual rate of 7%. He starts to pay for the simple interest loan in 4 years. How much interest will have been added to the loan at that time?

Answer 1

#$1295# of interest will have been added to the loan in #4# years.

For simple interest, #I = Prt# where #I# is the simple interest, #P# is the principal, #r# is the rate (in percent) and #t# is the time (in years).

Plugging in #$4265# for #P#, #0.07# for #r#, and #4# for #t#: #I = 4625 * 0.07 * 4# #I = 323.75*4# #I = 1295#

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Answer 2

Isaiah Anthony

The interest added to the loan after 4 years would be calculated using the formula for simple interest:

Interest = Principal × Rate × Time

Substituting the given values: Interest = $4265 × 0.07 × 4

Interest = $1193.80

So, after 4 years, $1193.80 of interest will have been added to the loan.

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Answer from HIX Tutor

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.