Answer:
The borrower will pay back $4,136.
Step-by-step explanation:
This is a simple interest problem.
The simple interest formula is given by:
[tex]E = P*I*t[/tex]
In which E are the earnings, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.
After t years, the total amount of money is:
[tex]T = E + P[/tex].
In this question:
Loan amount of 1760, so [tex]P = 1760[/tex]
Interest rate of 13 and one half, so 13.5%. This means that [tex]I = 0.135[/tex].
10 years, so [tex]t = 10[/tex]
Interest on the Loan:
[tex]E = P*I*t = 1760*0.135*10 = 2376[/tex]
Total amount:
[tex]T = E + P = 2376 + 1760 = 4136[/tex]
The borrower will pay back $4,136.
