If you borrow $900 for 6 years at an annual interest rate of 7%. You will pay $1350.65
What is an annual interest rate?
"An annual interest rate is expressed as an interest rate. It calculates what percentage of the principal you'll pay each year by taking things such as monthly payments into account."
According to the problem
If you borrow $900 for 6 years at an annual interest rate of 7%
You will pay = [tex]90(1+\frac{r}{100} )^{t}[/tex]
= [tex]900(1+\frac{7}{100} )^{6}[/tex]
= [tex]900(1.07)^{6}[/tex]
= $1350.65
Hence, you will pay $1350.65
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