If Kate has a loan of $10,000 with an interest rate of 5% per year, she will pay a total of $10,500 over the two year period. This is calculated by multiplying the loan amount by the interest rate (5%) and then adding it to the original loan amount.
Total Amount = $10,000 + ($10,000 x 0.05) = $10,500
Calculate the total amount that Kate will pay to the bank during this two years period
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