Riley D. answered • 06/06/19

Experienced Math/English Tutor

When solving this problem, you must first convert the interest percentage to a decimal for multiplication. By moving the decimal point two times to the left, 13.5% becomes 0.135 which we then multiply by the amount borrowed or $3,425. This gives us 462.375, but this is only for one year. By taking this number and multiplying it by 2 for the number of years of interest, we get 924.75. Therefore, after 2 years this loan for $3,425 will accrue $924.75 in interest.