Question

Nate borrows $300 to buy a smartphone. He is charged 5% simple interest per year.

How much interest, in dollars, will Nate pay after 2 years?

Answer 1

He is charged 5% simple interest per year. How much interest, in dollars, will Nate pay after 2 years? The interest after 2 years will be 0.05*300*2 = 30 dollars.