document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1093073>Question 1093073</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Robert gets a loan from his bank. He agrees to borrow £6 000 at a fixed annual simple interest rate of 7%. He also agrees to pay the loan back over a 10 year period. How much money in total will he have paid back at the end of 10 years.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #707679 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=707679\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the formula for simple interest is:\r<BR>\n" );
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document.write( "i = p * r * n\r<BR>\n" );
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document.write( "f = p + i\r<BR>\n" );
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document.write( "combine the two formulas together and you get f = p + p * r * n.\r<BR>\n" );
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document.write( "factor out the p to get f = p * (1 + r * n).\r<BR>\n" );
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document.write( "i is the interest<BR>\n" );
document.write( "p is the present value or principal<BR>\n" );
document.write( "r is the interest rate per time period<BR>\n" );
document.write( "n is the number of time periods.<BR>\n" );
document.write( "f is the future value\r<BR>\n" );
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document.write( "in your problem:\r<BR>\n" );
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document.write( "p equals 6000<BR>\n" );
document.write( "r = .07 per year<BR>\n" );
document.write( "n = 10 years.\r<BR>\n" );
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document.write( "the formula becomes 6000 * (1 + .07 * 10) = 6000 * 1.7 = 10200.\r<BR>\n" );
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document.write( "if you calculated it separately from i = p * r * n and then f = p * i, you would get the same result.\r<BR>\n" );
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document.write( "i = p * r * n becomes i = 6000 * .07 * 10 which becomes 4200.\r<BR>\n" );
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document.write( "f = p + i becomes f = 6000 + 4200 which becomes 10200.\r<BR>\n" );
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