Question

Jess borrows $250 from the bank. The bank charges 11% simple interest over 2 years. How much will Jess owe the bank at the end of 2 years? $27.50 $55.00 $277.50 $305.00

Answer 1

`\huge \boxed{\mathrm{\$ \ 305.00}}`

Explanation:

We can use the simple interest formula to calculate for the interest.

`I=P \cdot r \cdot t \\ \\ \\ \sf I = interest \\ \\ P=principal \ amount \\ \\ r=rate \ (\%) \\ \\ t=time \ (years)`

Calculating the interest over the two years:

`I=250 \cdot 11\% \cdot 2 \\\\ I=250 \cdot 0.11 \cdot 2 \\\\ I=55`

Adding the interest to the principal amount:

`\Rightarrow 250+55 \\ \\ \Rightarrow 305`

Jess will owe the bank $305.00 at the end of the 2 years.

Answer 2

$305.00

Explanation:

Use the formula I = prt, where I is the interest money created, p is the starting amount of money, r is the interest rate as a decimal, and t is time.

I = prt

I = 250(0.11)(2)

I = 55

Add 55 to the amount he borrowed:

250 + 55

= $305.00