Question

PLZ HELP AND EXPLAIN !! Arron borrowed $200 from his cousin. He promised to repay the loan in 2 years at a simple annual interest rate of 5%. How must Intrest will Arron owe at the end of 2 years

Answer 1

The first thing you have to do is know the equation. The equation is a(1+p)^t.
a= the amount of money p= the percent represented as a decimal and t=time ( the t is raised as an exponent)
so, in this case, it is represented as 200(1+0.05)^2\
200(1.05)^2
200(1.1025)
220.5 That is how much extra he would owe in interest fee's