Question

Alexa borrows 10,000 from her aunt and they agree alexa owe her aunt after 2 years assuming that no payments are made during that time?

Answer 1

We can very simply solve this word problem using a simple equation.

First, we know Alexa borrows 10000 and needs to pay 5% of 10000 each year for 2 years.

The solution to this problem can be found like this:

10000 x (0.05 + 0.05)

1000 dollars.

Alexa owes her aunt $1000 more than what her aunt let her borrow

Answer 2

Data:

Initial amount: $10,000

5% simple interest

Time: 2 years

You can use the next formulas to find the amount Alexa owe her aunt since the borrow is with simple interest:

`\begin{gathered} F=A+I \\ \\ I=A\cdot(r)/(100)+t \end{gathered}`

F is the final amount

A is the initial amount

I is the interest

r is the rate of interest

t is the time in years

Find first the Interest:

`I=10,000\cdot(5)/(100)\cdot2=1,000`

Find the final amount:

`F=10,000+1,000=11,000`Then, Alexa owe her aunt after 2 years an amount of $11,000