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Mathematics 24 Online
OpenStudy (anonymous):

4. Brock borrows $2,000 from his father and repays the money after 2 years, plus 5% simple interest. How much interest does Brock pay on the loan? Why is the answer to this $200 and not $2000 I did the formula and everything I need help! The answer booklet says $2000 is wrong. Tell me what I did wrong!?

OpenStudy (jdoe0001):

Interest Amount = Principal(original amount) * rate(in decimals) * time(years)

OpenStudy (jdoe0001):

\(\bf i = prt\implies i = 2000\times 0.05\textit{(5% in decimal format)}\times 2\textit{(years)}\)

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