Answer:
$5,040
Step-by-step explanation:
You are going to want to use the simple interest formula for this. The one below is modified for solving the interest earned.
[tex]I=Prt[/tex]
I = interest amount
P = principal amount
r = interest rate (decimal form)
t = time
First, change 7% into its decimal form:
7% -> [tex]\frac{7}{100}[/tex] -> 0.07
Next, plug in the values into the equation:
[tex]I=18,000(0.07)(4)[/tex]
[tex]I=5,040[/tex]
Sarah will have to pay $5,040 at the end of the 4 years.
