c. Jessica Tate borrows $2,000 at a 10 percent add-on rate for two years. What is the finance charge?

$400.

Explanation:

The simple interest is given by the formula below;

Where;

I = Interest or Finance charge.

P = Principal

.

R = Rate.

T = Time (in years).

Given the following parameters;

I =?,

P = $2,000

R = 10% = 0.1

T = 2 years

Substituting into the formula, we have;

I = 2000 * 0.1 * 2

I = $400.

Hence, the finance charge is $400.

answer; correct answer is investing activity;

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