Question

Let’s say that Jose borrows $200 for 2 years at a rate of 8% simple interest calculated annually. How much will he have to pay back at the end of 2 years?

Answer 1

$232

Explanation:

Jose will owe a total of two hundred thirty-two dollars at the end of two years. The total he owes is equal to the principal, two hundred dollars, plus the interest, thirty-two dollars.

Answer 2

232 dollars

Explanation:

200*0.16=32

200+32=232