Question

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? Give your answer in dollars to the nearest dollar. Do not include the dollar symbol or commas in your answer.

Answer 1

Answer:

At the end krisi will receive 550

Step-by-step explanation:

We have given that krisi took $500

So the principle amount P = $500

Rate of interest r = 5%

Time t = 2 years

We know that simple interest is given by

$simple\ interest=\frac{P\times r\times t}{100}=\frac{500\times 5\times 2}{100}= 50$

So the amount which he receive = 500 +50 =550

So at the end krisi will receive 550