Question

11) Elsa took out a $2,200 loan with a 2-year term to buy a car at a 6% simple interest rate. How much will she have to pay IN INTEREST? *​

Answer 1

$264

Explanation:

A 6% interest means that you have to pay 6% of the loan every period (which in this case is a year because it isn't stated anywhere). 6% of $2.200 is equal to $132, so for a loan of 2 years Elsa has to pay
`\$132 \cdot 2 = \$264`, which is exactly what the question was asking for.