Question

Cory borrows $1,200 from the bank for riding lawn mower. The interest rate Is 8% per year. How much simple interest will he pay is he takes 2 years to repay the loan?

Answer 1

Answer:

$1,392

Step-by-step explanation:

1,200(0.08)(2) = 192

1,200 + 192 = $1,392

Answer 2

Cory will pay $\ 192$ as simple interest in 2 years.

Solution:  

Given, the amount (P) Cory borrows is $\ 1200$

The rate of interest R = $8\%$

Time to repay (T) = 2 years

$\bold{Simple \ Interest = \frac{principle \ amount\times time\times rate \ of \ interest}{100}}$

On substituting the values in the formula we get,

$\rightarrow \frac{(1200\times2\times8)}{100}$

$\rightarrow \frac{19200}{100} = 192$

Therefore, the simple interest is $\ 192$