Question

If you borrow $1,700 at 7% simple interest, how much interest will you pay?

a. $119
b. $120
c. $7.00
d. $1819

Answer 1

You are paying 7% interest of what you borrow so multiply what you borrow times 7%
1700(.07)= A) 119 in interest
total paid would be 1700 +119

Answer 2

The answer is a. 119.

Explanation:

To apply the simple interest we have to multiply the loan and the interest, then divide it by 100 % to eliminate the percentage units. In the equation we have:

`(1700*7)/(100) =119`

So the interest is going to be a. $119. Because they ar asking for the interest, not the total of loan.