Question

Jack's cousin agreed to lend him 1,000$ to buy a laptop. his cousin is going to charge him 5% simple interest. Jack agreed to make payments for 2 years. How much interest will he pay? explain how you came up with your answer.​

Answer 1

Jack will pay $100 in interest over 2 years.

Step-by-step explanation:

To calculate the interest, we can use the formula:

Interest = Principal * Rate * Time

In this case, the principal is $1,000, the rate is 5% (or 0.05 as a decimal), and the time is 2 years.

Substituting these values into the formula:

Interest = $1,000 * 0.05 * 2 = $100

Jack will pay $100 in interest over 2 years.