Question

Meryl took out a loan for $5,000 at an interest rate of 9.75% for 6 years. Find the amount of interest and total amount he had to pay back.

i = ?
a = ?

Answer 1

The Interest is 2,925.00 and now you owe 7,925.00. I hope this helps

Explanation:

Answer 2

There are no compound periods given, so use the simple interest formula:

A = P(1+rt) where P is the principal, r is the rate and t is the time.

A = 5000(1+0.0975(6))

A = 5000(1+0.585)

A = 5000(1.585)

A = $7,925

Interest = 7925 - 5000 = $2,925

Total paid back = $7,925