Question

Dr. Jones took out a loan of $ 2345. The loan was for 24 months, and the interest rate was 2.75% per year. How much money does Jones owe the bank after 2 years?

Answer 1

Dr. Jones owes 2,473.96 dollars to the bank after the 24 months.

Answer 2

$2,473.98

Explanation:

To figure out how much money is added which is the interest rate you slide the decimal over 2 decimal places so, 2.75% turns into .0275 which then you multiply it to 2,345 and you get 64.4875 and you have two years, you multiply it by 2 and get 128.975, so then you add it to the starting amount which is 2,345 and you get 2,473.98