Explanation:
Q1
Finding amount of money of the interest (2.5%)
5000 × 0.025 = $125 per year
Since he left the money in for 10 years
125 × 10 = $1250
Add that with the original amount of money
1250 + 5000 = $6250
Q2
Finding the amount of money of the charge (4.5%)
45000 × 0.045 = $2050 year
Since she has been paying off the loan for 20 years
2050 × 20 = $40500
Add that with the original loan to find the amount that she has to pay in TOTAL
40500 + 45000 = $85500