Simple Interest Problems Set 9 Question 10

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Question 10

Ernesto managed to get a loan for $500 from the UBS Bank USA in order to get a computer. The UBS Bank USA loaned him the $500 at an interest rate of 2% per annum, and a period of 12 months.

What is the total amount of interest that Ernesto will have to pay back over the period of 12 months to the UBS Bank USA? How much money in total will Ernesto end up paying back?

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