how much will Mary owe if she borrows $2,000 at a rate of 6% for 2 years?
To calculate how much Mary will owe when borrowing $2,000 at a rate of 6% for 2 years, you can use the simple interest formula. The formula is:
Interest = Principal x Rate x Time
Where:
- Principal is the initial amount borrowed ($2,000 in this case)
- Rate is the annual interest rate expressed as a decimal (6% = 0.06)
- Time is the number of years (2 years)
First, calculate the interest:
Interest = $2,000 x 0.06 x 2
= $240
Next, add the interest to the principal to find the total amount Mary will owe:
Total amount = Principal + Interest
= $2,000 + $240
= $2,240
Therefore, Mary will owe $2,240 if she borrows $2,000 at a 6% interest rate for 2 years.