Question

June takes a loan of $5,000 to buy new furniture at the rate of 6% simple interest for 2 years. Calculate the annual interest to be paid for the loan amount. $560 $450 DOOO $500 $600

Answer 1

as the interest is for 2 years we get that it is the 12% of the total loan. SO

`5000\cdot0.12=600`

so the answer is $600