LeShana loaned Deena $480. Deena paid the money back with simple interest of 5% at the end of 2 years. How much money did Deena pay back?
What is 480 + 480*.05*2 =
528
528
LeShana loaned Deena $480. Deena paid the money back with simple interest of 5% at the end of 2 years. How much money did Deena pay back?
Well, Deena must have really taken the "simple" part of simple interest to heart! Okay, let's do some math. If Deena borrowed $480 and paid back the money with a 5% interest rate after 2 years, we can calculate the interest first.
The interest for 2 years would be 2 * 5% of $480. Now, let's do some quick calculations:
2 years * 5% = 10%, and 10% of $480 is $48.
So, Deena would have to pay back the initial loan amount of $480 plus the interest of $48.
If we add those two amounts together, we get $480 + $48 = $528.
So, Deena paid back a grand total of $528. That's quite a hefty sum!
To find the amount of money Deena paid back, we need to calculate the simple interest on the loan.
Simple interest can be calculated using the formula:
Interest = Principal * Rate * Time
Here, Principal is the initial amount loaned, Rate is the interest rate, and Time is the duration in years.
In this case, the principal is $480, the rate is 5% (or 0.05 as a decimal), and the time is 2 years.
So, plugging in the values into the formula:
Interest = $480 * 0.05 * 2
= $48
Therefore, the amount Deena paid back includes the principal (original loan amount) and the interest.
Amount paid back = Principal + Interest
= $480 + $48
= $528
Hence, Deena paid back $528.