Question

Joanna wants to buy a car. Her parents loan her 5,000 for 5 years at 5% simple interest. How much will Joanna pay in imterest?

Answer 1

Hello!

Data:

I = ?
P = $5000
rate = 5% = 0.05
t = 5


`I = P*r*t`

`I = 5000*0.05*5`

`\boxed{\boxed{I = 1.250}}\end{array}}\qquad\quad\checkmark`

Answer 2

if she pays 5% a year for interest on a $5,000 loan she will pay $1,250

$225 a year for 5 years