Question

Susan will take out 7500 to buy a used car. the simple interest rate is 5% for 5 years. How much money will she pay the bank back

Answer 1

Answer: To calculate the amount of simple interest, we use the formula: I = P * r * t, where P is the principal amount (7500), r is the annual interest rate (5%) and t is the time in years (5).

So, the simple interest is: I = 7500 * 5 * 0.05 = 187.5

The total amount Susan will have to pay back to the bank is the principal amount plus the interest:

7500 + 187.5 = $76 87.5

Therefore, Susan will pay the bank back $76 87.5 after 5 years.

Explanation: