A student borrows $2000 for tuition to be paid back at a simple interest rate of 15% in 6 months. How much does she pay back in 6 months?

Question

A student borrows $2000 for tuition to be paid back at a simple interest rate of 15% in 6 months. How much does she pay back in 6 months?

Answer 1

one half year's interest at rate of 15% per year means that the interest will be 0.075 times $2,000.

 

payback amount is $2,000(1.075)