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24 October, 17:15

Ariane borrows $600 on a 2-year loan. She is charged 5% simple interest per year. How much interest is she charged for 2 years? What is the total amount she has to pay back?

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  1. 24 October, 17:55
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    Find out what 5% of $600 is by multiplying them by each other after changing the percent from a percentage form into a decimal.

    600*.05=$30

    Now add that to $600 every year.

    $600+$30=630.

    Now add it again since it's for two years.

    $630+$30 = $660.

    Answer:$660.
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