I need help with this

Question

Business Loan: The owner of a clothing store borrows $5,670 for 1 year at 15.5% interest. If he pays the loan back at the end of the year, how much does he pay back?

Answer 1

Let's use our simple interest formula to solve for this problem:

A = P(1 + r)^t

A = 5,670(1 + 0.155)¹

A = 5,670(1.155)

A = $6,548.85