AnswersAdvanced Financial AlgebraPersonal Savings and Consumer Credit: Part Two — TestQuestion 2
2
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Personal Savings and Consumer Credit: Part Two — Test

Question 2 • Advanced Financial Algebra

Zyaire secures a loan of $⁢1,000 at a simple interest rate of 2.5% Without making any payments for 2 years, what will be the total amount he owes? Use the Simple Interest Formula cap i is equal to cap p times r times t

Answer
A
1 dollars comma 025
B
1 dollars comma 050
C
1 dollars comma 100
D
1 dollars comma 075

Explanation

Use the simple interest formula I = P × r × t. The interest is $1,000 × 0.025 × 2 = $50, so the total owed is $1,000 + $50 = $1,050. The correct choice is $1,050.

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