Question

Sarah loans Kim $500 and charges her 2% simple annual interest. Kim promises to repay Sarah in 18 months (1 year= 12 months) . About how much will Kim have to pay Sarah? Round your answer to the nearest cent.

Answer 1

$515

Step-by-step explanation:

2% interest for 12 months

Two percent of 500 dollars is 10 dollars

12 months to $10

Six months to five dollars

18 months to $15

500+15=515