Final answer:
The interest paid on a 2-year loan of $1000 at 12% simple interest is $240.
Step-by-step explanation:
To find the interest paid on the loan, we can use the formula for simple interest: Interest = Principal × Rate × Time. In this case, the principal (P) is $1000, the rate (R) is 12% (or 0.12 as a decimal), and the time (T) is 2 years. Plugging in these values, we get: Interest = $1000 × 0.12 × 2 = $240. Therefore, the interest paid on this 2-year loan is $240.