Question

If you borrow $500 at 5% for two years, how much will you pay backboy the end of the term?

Answer 1

• Principal=P=500
• Rate of interest=R=5%
• Time=T=2

Interest be I

• I=PRT/100
• I=500(5)(2)/100
• I=5²(2)
• I=25(2)
• I=$50

Total:-

• P+I
• 500+50
• $550