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shutvik [7]
3 years ago
6

Krisi took out a $500 discounted loan calculated using a simple interest rate of 5% for a period of 2 years. How much money does

Krisi receive when the loan is drawn down?
Mathematics
1 answer:
Fiesta28 [93]3 years ago
7 0

Answer:

$550

Step-by-step explanation:

Use the formula for total amount with simple interest

A = P(1+rt)

A is final value. P is starting value.

r is interest rate in decimal form. t is time.

5% = 0.05

A = P(1+rt)

A = 500(1+0.05(2))

A = 550

Krisi receives $550 when the loan is drawn down.

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