David borrowed $2,500 from his local bank. the yearly interest rate is 8%. if david pays the full principle and interest in the first year of the loan, how much money will he pay to the bank?

$2700.

Step-by-step explanation:

We have been given that David borrowed $2,500 from his local bank. The yearly interest rate is 8%.

To find the total money paid by David to bank, we will use simple interest formula.

, where,

A = Amount after t years,

P = Principal amount,

r = Annual interest rate in decimal form,

t = Time in years.

Let us convert our given rate in decimal as:

Therefore, David will pay $2700 to the bank.