Suppose you borrow $\$ 630$ for a term of two years at simple interest and $6.18 \%$ APR. Determine the total (principal plus inferest) you must pay back on the loan.
The total (principal plus interest) you must pay back on the loan is $\$ \square$
(Round to the nearest cent as needed.)
Answer
Final Answer: The total (principal plus interest) you must pay back on the loan is \(\boxed{707.87}\) dollars.
Step 1 ：Suppose you borrow $630 for a term of two years at simple interest and 6.18% APR.
Step 2 ：First, we need to calculate the simple interest. The formula for simple interest is \(I = PRT\), where \(P\) is the principal amount, \(R\) is the rate of interest, and \(T\) is the time in years.
Step 3 ：Substitute \(P = 630\), \(R = 6.18 / 100\), and \(T = 2\) into the formula, we get \(I = 630 * 0.0618 * 2 = 77.868\).
Step 4 ：Next, we need to calculate the total amount to be paid back. The total amount is the sum of the principal and the interest, which is \(630 + 77.868 = 707.868\).
Step 5 ：Round to the nearest cent, the total amount to be paid back is approximately $707.87.
Step 6 ：Final Answer: The total (principal plus interest) you must pay back on the loan is \(\boxed{707.87}\) dollars.
