Marcie took out a loan for $2,482. The loan has a simple interest rate of 3.5% per year. No payments will be made on the loan until the end of one year How much will Marcie owe after one year?
A.$868.7
B.$2,568.87
C.$68.87
D.$868.70


To determine how much Marcie will owe after one year, we can use the formula for simple interest:

\[
I = P \times r \times t
\]

Where:
- $I$ is the interest,
- $P$ is the principal (the initial loan amount),
- $r$ is the annual interest rate (expressed as a decimal),
- $t$ is the time the money is borrowed for (in years).

### Step 1: Plug in the values
- $P = 2,482$
- $r = 3.5\% = 0.035$
- $t = 1 \text{ year}$

\[
I = 2,482 \times 0.035 \times 1
\]

### Step 2: Calculate the interest
\[
I = 2,482 \times 0.035 = 86.87
\]

### Step 3: Total amount owed after one year
To find the total amount owed after one year, we add the interest to the principal:

\[
\text{Total} = P + I = 2,482 + 86.87 = 2,568.87
\]

Therefore, the correct answer is **B. $2,568.87**.

Would you like further details or have any other questions? Here are 5 related questions to consider:

1. How would the total owed change if the loan term were 2 years instead of 1 year?
2. What if the interest rate was 5% instead of 3.5%?
3. How does simple interest differ from compound interest?
4. If Marcie paid off part of the loan mid-year, how would that affect the interest?
5. What would be the total amount owed for a loan of $5,000 under the same terms?

**Tip:** Simple interest depends only on the principal and time, making it easier to calculate compared to compound interest!

Marcie took out a loan for $2,482. The loan has a simple interest rate of 3.5% per year. No payments will be made on the loan until the end of one year. How much will Marcie owe after one year? A.$868.7 B.$2,568.87 C.$68.87 D.$868.70

Learn how to calculate the simple interest for a loan of $2,482 at an annual interest rate of 3.5%. This problem covers basic arithmetic, percentages, and the simple interest formula. Suitable for students in Grades 6-8.

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