Annika friend offers to loan her $2000 to help pay her college tuition. Annika plans to borrow the money for a year and par 3.5 percent in interest. How much will Annika pay back to the person that she borrows the money from if she pays it back in a year?
OA
$2,035
OB
$2,070
OC. $2.350
OD
$2,700

Answer:

2,070

Explanation:

You have to multiply the present in interest by the $2000 and then add that answer onto the $2000.

If Annika borrows $2000 for a year and pays 3.5% interest, she will need to pay back a total of $2000 + (3.5% * $2000) = $2000 + $70 = $2070. Therefore, the correct answer is $2,070 (B).

An interest rate is a percentage of the principal (original amount) of a loan or investment that is charged by the lender or issuer for the use of their money. Interest rates are typically expressed as a percentage per year, and they can be either fixed (meaning they do not change over time) or variable (meaning they can change over time).

Interest rates are an important consideration when borrowing or lending money, as they can significantly impact the cost of borrowing or the return on investment. For borrowers, a higher interest rate means that they will need to pay more in interest over the life of the loan, which can increase the overall cost of borrowing. For lenders, a higher interest rate means that they will receive a higher return on their investment, which can be more attractive than lower interest rates.

Interest rates are influenced by a variety of factors, including economic conditions, market demand, and the risk associated with the loan or investment. Governments and central banks often use interest rates as a tool to manage the economy and achieve specific policy goals, such as controlling inflation or promoting economic growth.

Learn more about interest rate, here:

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