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. You can use your own calculator or the simple interest calculator to calculate interest. Enter the values in this table.

Answer 1

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

Explanation:

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