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Norma-Jean [14]
3 years ago
13

Ted borrowed $100 from 2 years at a 10% interest rate. How much interest will he pay on the loan? What will be the total amount

due at the end of the loan?
Mathematics
1 answer:
mr_godi [17]3 years ago
5 0

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.

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