Question

Julio went to the bank and took out loan of $2,000 in a simple interest account for 3 years with an interest rate of 2.5%. At the end of 3 years, what is the total amount of money that Julio will have in his account?

Answer 1

Answer: $2,150

Explanation:

The amount taken was $2,000

The interest rate was 2.5%

Period is 3 years.

The formula for simple interest is:

= Amount * ( 1 + rate * time)

= 2,000 * ( 1 + 2.5% * 3)

= $2,150