Question

Meredith borrows $12,560 and pays 2% simple interest each year for 4 years. What is the total amount of interest that she will pay on the loan?

Answer 1

D on Edg.

Explanation:

All credit goes to the answer above, I just showed a more simple answer.

Answer 2

Meredith borrowed $12,560 with simple interest of 2% each year, now, it took her 4 years to pay this amount. Let's solve for the total amount she paid including the interest.
=> 12 560 * .02 = 251.2 per year
=> 251.2 * 4 = 1004.8 dollars for 4 years.
=> 1004.8 + 12 560 = 13 564.8 dollars.