If you borrowed $1450 to buy a used car at a rate of 10% interest and planned on paying it back in 4 years, what is the total amount you would pay back?

He will pay back $2030

Step-by-step explanation:

Simple Interest  = (Principal × rate × time)/100

Principal= $1450, rate = 10% and time is 4 years

Substitute the above info into the formula to get the interest

SI = (1450 × 10 × 4)/100

SI = 145 × 4

SI = $580

He will therefore pay back principal plus interest, which will be

$1450 + $580 = $2030

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%