If you take out a loan for $2,000 at an annual interest rate of 10%, how much interest will you pay each year?

Question

BlackTom AI · Accepted Answer

To analyze the problem, start by identifying the loan amount and the annual interest rate.
Option A ($100.00) would correspond to an interest rate of 5% on the $2,000 loan, since 0.05 × 2000 = 100. This does not match the given 10% rate.
Option B ($200.00) matches the 10% annual interest: 0.10 × 2000 = 200. This is the standard annual interest calculation for a simple interest loan.
Option C ($20.00) would imply a 1% interest rate on the $2,000 loan, because 0.01 × 2000 = 20. A 1% rate would contradict the stated 10% rate.
Option D ($2,000.00) would be equal to the principal itself, which would be the total amount borrowed, not the yearly interest. This misunderstands how interest is computed.
Putting it together, the only amount that aligns with a 10% annual interest on a $2,000 loan is $200.00, since interest per year is computed as principal × rate, i.e., 2000 × 0.10 = 200.

GBUS4330W01 25 Fall GBUS 4330 Quiz 2 - Requires Respondus LockDown Browser

If you take out a loan for $2,000 at an annual interest rate of 10%, how much interest will you pay each year?

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类似问题

Simple interest grows exponentially over time.

If you had a loan for $30,000 at an annual interest rate of 8 percent with a 90-day interest prepayment penalty, what would be the amount of your penalty?

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Eunchae invested $2,000 six years ago at 4.5 percent interest. She spends all of her interest earnings immediately so she only receives interest on her initial $2,000 investment. Which type of interest is she earning?

How much money will you accumulate in 119 days, if you invest $9,000 today at an interest rate of 4% per year ? Round your answer to 2 decimal places (If the answer is 6.59871 -> enter as 6.60)

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GBUS*4330*W01 25 Fall GBUS 4330 Quiz 2 - Requires Respondus LockDown Browser

If you take out a loan for $2,000 at an annual interest rate of 10%, how much interest will you pay each year?

查看解析

登录即可查看完整答案

类似问题

Simple interest grows exponentially over time.

If you had a loan for $30,000 at an annual interest rate of 8 percent with a 90-day interest prepayment penalty, what would be the amount of your penalty?

A Term Deposit of $7 200 was taken out on 1 July 2018. Interest is earned at 5% per annum. Interest is payable on 30 September and 30 March each year. What amount of interest will be received as a cash receipt from the Bank on 30 March 2019?

Eunchae invested $2,000 six years ago at 4.5 percent interest. She spends all of her interest earnings immediately so she only receives interest on her initial $2,000 investment. Which type of interest is she earning?

Eunchae invested $2,000 six years ago at 4.5 percent interest. She spends all of her interest earnings immediately so she only receives interest on her initial $2,000 investment. Which type of interest is she earning?

How much money will you accumulate in 119 days, if you invest $9,000 today at an interest rate of 4% per year ? Round your answer to 2 decimal places (If the answer is 6.59871 -> enter as 6.60)

The method of calculating interest once during the entire life of the loan, on the original sum borrowed, is known as:

更多留学生实用工具

希望你的学习变得更简单

GBUS4330W01 25 Fall GBUS 4330 Quiz 2 - Requires Respondus LockDown Browser