Multiple choice

Bank of USA lent $2000 for a year to Joe. The interest on the loan was 7% of the amount lent to be received back together with the loan at the end of the year. What was the total amount Joe needed to pay off the loan?

  1. $2100.40
  2. $2104.00
  3. $2140.00
  4. $2410.00
  5. $2540.00
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The interest is 7% of \$2000, which is 0.07 * 2000 = \$140. The total amount to be paid back is the principal plus the interest, which is $2000 + $140 = $2140.

AI explanation

The total amount to be paid is calculated by adding the simple interest to the principal amount. Using the simple interest formula SI = (P * R * T) / 100, the interest is (2000 * 7 * 1) / 100, which equals 140 dollars. Adding this interest to the original 2000 dollar loan gives a total repayment amount of 2140 dollars.

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