Question

Core Bites # 13

Shannon borrowed $6,000 from her parents to buy a car. Her parents
charged her 4% simple interest for 2 years. How much interest did she
pay her parents?

Answer 1

$480

explanation: i used the formula i=prt and plugged the numbers in —> i=6000•0.04•2 and got i=480

Answer 2

$1,500

Explanation:

Shannon just borrowed $6,000 and charged her for 4% for 2 years. So you will divide 6,000 / 4 which gives you $1,500.