Question

Meredith borrows $12,560 and pays 2 percent simple interest each year for 4 years. What is the total amount of interest that she will pay on the loan?
$251.20
$1,004.80
$11,555.20
$13,564.80

Answer 1

2% of 12,560 would give you 251.2 and 251.2 X 4 = 1004.8 so your answer is B

Answer 2

Meredith borrow 12,560 so if you do some basic calculations, %2 of that is 251.20 dollars of interest per year

The total amount of interest she will pay for 4 years (251.20 x 4) is 1004.80 dollars for 4 years.

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