Mary borrowed $11,000 at 5% simple interest for 4 years. What was the total interest?

Question

Question 1 options:

$22

$220

$22,000

$2,200

Answer 1

To calculate the total interest, we can use the simple interest formula:

Interest = Principal * Rate * Time

In this case, the principal (amount borrowed) is $11,000, the interest rate is 5%, and the time is 4 years.

Plugging in the values:
Interest = $11,000 * 0.05 * 4 = $2,200

Therefore, the total interest is $2,200.