Question

Mia borrowed $5000 from her grandparents to purchase her first car. Her grandparents charge her 1.75% simple Interest. How much interest will Mia pay her grandparents after 6 years

Answer 1

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$5000\\ r=rate\to 1.75\%\to (1.75)/(100)\dotfill &0.0175\\ t=years\dotfill &6 \end{cases} \\\\\\ I = (5000)(0.0175)(6) \implies I = 525`