Question

A customer borrows $2000 from the bank. The bank charges 5% simple interest for 2 years. The customer agrees to pay back the money and interest in 24 equal payments. How much does the customer pay back each month?

Answer 1

The costumer pays $87.50 back each month.

Explanation:

$2,000*5%=

$2,000*0.05=100

2,100/24=$87.50