Question

Meredith borrows $12,560 and pays 2 percent simple interest each year for 4 years. What is the total amount of

interest that she will pay on the loan?
O $251.20
O $1,004.80
O $11,555.20
O $13,564.80
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Answer 1

The answer to your problem is, D. $13,564.80

Explanation:

We know it took her 4 years to pay this amount. Let's solve for the total amount she paid including the interest.

12,560 x 0.02 = 251.2 per year

251.2 x 4 = 1004.8 dollars for 4 years.

1004.8 + 12,560 = 13,564.8 dollars.

Thus the answer to your problem is, D. $13,564.80