Find the amount paid for the loan

Question

Help! “$2000 at 12% for three years, find the amount paid for the loan” I don’t get it.

Answer 1

Based on the questions, it looks like we are talking about simple interest, so we use this equation:

Interest = Principle x Rate x Time

I=2000 x 12% x 3

I=2000 x .12 x 3

I=240 x 3

I=720

It will cost $720 dollars to borrow the money. You also need to pay back the original $2000, so in total, the cost is $2,720.