Question

Damon convinced his aunt to lend him 2000 to purchase a plasma digital tv she has agreed to charge only 6 percnt simple interest and he has agreed to repay the loan at the end of one year
How much interest will he pay for the year?

Answer 1

Answer:

$120

Explanation:

In this question, we simply have to apply the simple interest formula which is shown below:

= Principal amount × rate of interest × time period

= $2,000 × 6% × 1 year

= $120

Simply we multiplied the principal amount with the interest rate and the time period so that the accurate amount can come.

So, $120 interest is paid for the year