Question

Damon convinced his aunt to lend him $2,000 to purchase a plasma digital TV. She has agreed to charge only 6 percent simple interest, and he has agreed to repay the loan at the end of one year. How much interest will he pay for the year?

Answer 1

$120

Step-by-step explanation:

As per simple interest the total amount of interest payable by Damon to his Aunt can be calculated using the formula of Simple interest which is as follows:

A= P(1+rt)

Where

A is the amount of Interest

P is the principal amount borrowed

r is the rate of interest

So accordingly A= 2000(1+6/100)

A=$120

The amount of simple interest payable by Damon to his Aunt will be $120 and the total amount payable will be P+A= $2,000 =$120=$2,120

Answer 2

120$ will be paid as interest at the end of the year

Step-by-step explanation:

because Simple interst = Principa amount of loan x rate /100

2000x6/100=120 $