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