Meredith borrows $12,560 and pays 2 percent simple interest each year for 4 years. What is the total amount of interest that she will pay on the loan?
A. $251.20
B. $1,004.80
C. $11,555.20
D. $13,564.80
To calculate the total amount of interest, we can use the formula: interest = principal * rate * time.
The principal borrowed is $12,560.
The rate is 2%, which can be written as 0.02.
The time is 4 years.
Therefore, the total interest paid is $12,560 * 0.02 * 4 = $1,004.80.
The correct answer is B. $1,004.80.
To find the total amount of interest paid on the loan, we can use the formula:
Interest = Principal * Rate * Time
In this case, the principal (borrowed amount) is $12,560, the rate is 2% (or 0.02 as a decimal), and the time is 4 years.
Plugging these values into the formula, we get:
Interest = $12,560 * 0.02 * 4
= $1,004.80
Therefore, the total amount of interest that Meredith will pay on the loan is $1,004.80.
So, the correct answer is B. $1,004.80.
To calculate the total amount of interest that Meredith will pay on the loan, we need to use the formula for simple interest:
Interest = Principal * Rate * Time
In this case, the principal (amount borrowed) is $12,560 and the interest rate is 2 percent (or 0.02 in decimal form). The time is 4 years.
So, the total amount of interest can be calculated as:
Interest = $12,560 * 0.02 * 4
Interest = $12,560 * 0.08
Interest = $1,004.80
Therefore, the correct answer is B. $1,004.80.