Asked by Kat
Joe borrowed $2000 from the bank at a rate of 7% simple interest per year. How much interest did he pay in five years?
Answers
Answered by
Ms. Sue
I = PRT
I = 2,000 * 0.07 * 5
I = ?
I = 2,000 * 0.07 * 5
I = ?
Answered by
Brainiac
The formula for simple interest is
A = P(1 + rt) where P is the Principal (money you start with),R is the rate/percent and T is time.
A = 2000(1 + .07(5))
A = 2000(1 + .35)
A = 2000 (1.35)
A = 700
The interest he paid should be $700.
A = P(1 + rt) where P is the Principal (money you start with),R is the rate/percent and T is time.
A = 2000(1 + .07(5))
A = 2000(1 + .35)
A = 2000 (1.35)
A = 700
The interest he paid should be $700.
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.