Janet borrowed $2,000 for three years at a 5 percent interest rate compounded annually. use the simple interest formula to find out how much interest she will pay each year for 3 years

$100

Step-by-step explanation:

We want to calculate the interest on $2000 at 5% interest rate which Janet will pay each year.

The formula we will use the following simple interest formula for this:

where is the principal amount, is the interest rate and is the time in years.

Interest = = $100

Therefore, Janet needs to pay an interest of $100 each year for 3 years.