Answer:
She would owe $3,700 at the end of 12 month.
Step-by-step explanation:
Simple interest formula:
[tex]I=Prt[/tex]
[tex]I[/tex]= Interest
P=principal
r= Rate of interest
t=time
Given that, she could borrow $2,500. So P=$2,500.
The rate 4%=0.04 per month and time t= 12 months.
The interest [tex]I[/tex] = $(2,500×0.04×12)
           =$1,200
Amount = principal+ Interest
       =$(2,500+1,200)
       =$3,700
She would owe $3,700 at the end of 12 month.
