Randall is saving for a $700 dirtbike. He already saved $125 when he saw the bike went on sale for $500. He asks his dad for a loan to cover the rest of the money. His dad lends randall the money at a simple interest rate of 3% per year. How much does Randall wind up paying to his dad if he waits two years to pay back the entire loan plus interest?

Question

justnick09 · Answer

500-125=375, now interest is 3% so, 375x.03= 11.25; so now you have 2 years which is equal to=22.50 of interest added to 375=386.25