Question

A woman borrowed $2000 and agreed to repay it at the end of 3 years, together with 10% simple interest per year. How much will she pay 3 years hence?

Answer 1

Principal amount: 2000

Period: 3 years (36 months)

Simple Interest rate: 10%

Therefore:

2000 + 3 X (2000 X 0.1) = 2600

The woman has to pay $2600 at the end of three years