Jess borrows $250 from the bank. The bank charges 11% simple interest over 2 years.
How much money in total will Jess owe the bank at the end of 2 years?
To calculate the total amount Jess will owe the bank at the end of 2 years, we first need to calculate the interest charged.
Interest = Principal x Rate x Time
Interest = $250 x 0.11 x 2
Interest = $55
So, Jess will owe the bank $55 in interest at the end of 2 years.
Total amount Jess will owe = Principal + Interest
Total amount Jess will owe = $250 + $55
Total amount Jess will owe = $305
Jess will owe a total of $305 to the bank at the end of 2 years.