Question

10. Susan will take out a loan for $7500 to buy a used car. The simple

interest rate is 5% for 5 years. How much money will she pay the bank
back in total?

Answer 1

$9375

Explanation:

Given data

Loan= $7500

rate= 5%

time= 5 years

Required

The final amount A

Let us apply the simple interest formula, we have

A= P(1+rt)

substitute

A=7500(1+0.05*5)

A=7500(1+0.25)

A=7500*1.25

A=$9375

Hence Susan will have to pay $9375