Question

Nick borrowed $1250, to be repaid after 5 years at annual simple interest rate of 7.25%. how much interest will be due after 5 years? how much will nick have to repay.​

Answer 1

`\bf ~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$1250\\ r=rate\to 7.25\%\to (7.25)/(100)\dotfill &0.0725\\ t=years\dotfill &5 \end{cases} \\\\\\ I=(1250)(0.0725)(5)\implies 453.125 \\\\\\ \stackrel{\textit{he'll have to repay}}{1250+453.125}\implies 1703.125`