# 1. A woman borrowed $2000 and agreed to repay it at the end of three years, together with 10% simple interest per year. How much will she pay three years hence?

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It will be like this

2000 * 10%

or

2000 * 0.10

or

2000 * 10/100

That will be

200 (10% of 2000 is 200)

so in the first year the amount will increase to 2200

2000 + 200 = 2200

we now need to know the 10% of 2200

2200 * 10%

is

220

In the second year it will be 2420

2200 + 220 = 2420

In the last year,

2420 * 10%

is 242

Therefore

She needs to pay $2662

I hope it helps.

where:

S = future value = required

P = present value = 2000

n = periods = 3yrs

i = interest = 10%

therefore;

S = 2000(1+3(0.1))

S = 2600