Jodie borrowed 700 from her credit union and agreed to repay them that amount plus 4.49% simple annual interest accumulated over 4 years. how much will she return to the credit union at the end of the 4 years?

Solution

J o d i e b orro w e d 700 f ro m h er cre d i t u ni o n an d a g ree d t o re p a y t h e m t ha t am o u n t pl u s 4.49% s im pl e ann u a l in t eres t a cc u m u l a t e d o v er 4 ye a rs . h o w m u c h w i ll s h e re t u r n t o t h e cre d i t u ni o n a t t h e e n d o f t h e 4 ye a rs ?

Amount : 825.72

Solution steps

Translate the problem into an equation:

A = 700 (1 + 0.0449 \cdot 4)

700 (1 + 0.0449 \cdot 4) = 825.72

Amount : 825.72