A friend lends you $120, which you agree to repay with 2% interest.
How much will you have to repay?
How much of that was interest?
120 * 1.02 = ____
.02 * 120 = ___
122
A friend lends you $860, which you agree to repay with 9% interest. How much will you have to repay?
To calculate how much you will have to repay, we need to add the interest to the original loan amount.
First, we need to find 2% of $120, which is calculated by multiplying $120 by 2% (or 0.02).
Interest = $120 * 0.02 = $2.40
Now, let's add the interest to the original loan amount to calculate the total repayment:
Total Repayment = Original Loan Amount + Interest
= $120 + $2.40
= $122.40
Therefore, you would have to repay a total amount of $122.40.
To find out how much of that total repayment was interest, you subtract the original loan amount from the total repayment:
Interest Portion = Total Repayment - Original Loan Amount
= $122.40 - $120
= $2.40
Thus, $2.40 is the amount of interest you would have to repay.