Question

The formula for finding the interest on a loan is I = prt. Jack borrows $2,000 for 2 years at a rate of 2%. How much interest will he owe?

Answer 1

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Answer:

$80

Explanation:

You are given the principal amount (p=$2000), the annual interest rate (r=.02), and the time in years (t=2). Put the numbers in the formula and do the arithmetic.

I = prt

I = ($2000)(0.02)(2) = $80

Jack will owe $80 in interest.