Question

Aaron borrowed $200 from his cousin. He promised to repay the loan in 2 years at a simple annual interest rate of 5%. How much interest will Aaron owe at the end of 2 years?
A. $5
B. $10
C. $20
D. $25


NEED HELP ASAP

Answer 1

c $20 hope this helps

Answer 2

The formula is
I=prt
I interest owed?
P loan 200
R interest rate 0.05
T time 2 years
I=200×0.05×2
I=20

So the answer is c
Hope it helps!