Question

You decide to borrow $500 to go on a trip. You go to the bank and borrow the money at 11% for 2 years. Find the interest you will pay on the loan.

Answer 1

$500_100%
X$___11%

11 x 500
————— = 55 $
100

Answer 2

It would be 55$ for just one year & for 2 years 55 x 2= 110$