How much interest will Mary owe if she borrows $2,000 at a rate of 6% for 2 years?
I = PRT
I = 2,000 * 0.06 * 2
To calculate the interest Mary will owe on her loan, we can use the formula:
Interest = Principal x Rate x Time
Here:
Principal (P) = $2,000
Rate (R) = 6% (convert it to decimal by dividing by 100, so 6% becomes 0.06)
Time (T) = 2 years
Plugging the values into the formula:
Interest = $2,000 x 0.06 x 2
Interest = $240
Therefore, Mary will owe $240 in interest on her $2,000 loan.