Question

Janet borrowed $2,000 for three years at a 5 percent interest rate compounded annually. Use the simple interest formula to find out how much interest she will pay each year for 3 years

Answer 1

Answer:

$100

Step-by-step explanation:

We want to calculate the interest on $2000 at 5% interest rate which Janet will pay each year.

The formula we will use the following simple interest formula for this:

$I=P \times r \times t$

where $P$ is the principal amount, $r$ is the interest rate and $t$ is the time in years.

Interest = $2000 \times 0.05 \times 1$ = $100

Therefore, Janet needs to pay an interest of $100 each year for 3 years.

Answer 2

Answer:

Time in Years Interest Calculation

1 I = $2,000 × 0.05 × 1 = $100

2 I = $2,100 × 0.05 × 1 = $105

3 I = $2,205 × 0.05 × 1 = $110.25

Step-by-step explanation:

that is answer on plato hope this helps you