



 
Carolita, "The rate of 7%" means that the interest is 7% of what you borrowed. Thus the interest is 7% of $2,000.00. Seven percent is a fraction with 7 in the numerator and 100 in the denominator, that is it is 7/100 = 0.07. Thus 7% of $2,000.00 is 0.07 ×$2,000.00. Penny  


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