Calculate the total amount due after two years on a loan of $1100 with a simple interest charge of 7%.
A) $1254
B) $1204
C) $1304
D) $1354
E) $1154

Question

Quizplus · Accepted Answer

The total amount due can be calculated using the formula for simple interest: Total Amount = Principal + (Principal * Rate * Time). Here, Principal = $1100, Rate = 7% or 0.07, and Time = 2 years. So, Total Amount = $1100 + ($1100 * 0.07 * 2) = $1100 + $154 = $1254.

Calculate the Total Amount Due After Two Years on a Loan