Question

What is the interest you will pay if you borrowed $1,250 at 4% interest for 4 years?

Answer 1

$200

Explanation:

Answer 2

$200

Explanation:

The formula for calculating interest = principal x interest rate x time

principal is the amount borrowed = $1250

interest rate = 4%

Time = amount of years the money is borrowed for

$1250 x 0.04 x 4 = $200