Answer:
$400.
Explanation:
The simple interest is given by the formula below;
[tex]I = PRT[/tex]
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.
