Question

Margot bar is $1600agreed to pay it back with 2% interest. How much interest will she pay?

A) $32
B) $16
C) $40
D) $25

Answer 1

Margot will pay $32 in interest on her $1600 loan with 2% interest.

Step-by-step explanation:

To calculate the interest Margot will pay on her $1600 loan with 2% interest, we can use the simple interest formula: interest = principal x rate x time. In this case, the principal is $1600 and the rate is 2% (or 0.02 as a decimal). Since the time is not specified, we will assume it is for one year. Thus, the interest Margot will pay is:

Interest = $1600 x 0.02 x 1 = $32.

Therefore, the correct answer is A) $32.