Answer:
Interest = $20
Amount due = $120
Step-by-step explanation:
This is a Simple Interest problem. Simple interest is given as:
I = (P * R * T) / 100
Where I = interest
P = principal or amount loaned
R = rate of interest
T = time elapsed
Ted borrowed $100 from 2 years at a 10% interest rate.
This means that P = $100, R = 10%, T = 2 years.
Hence, the interest will be:
I = (100 * 10 * 2) / 100
I = 2000 / 100
I = $20
The interest after two years will be $20.
Therefore, the total amount due at the end of the loan is:
A = P + I
A = 100 + 20 = $120
The amount due is $120.
