Question

A loan of $6400 at 12.5% simple interest is to be repaid in 4.5 years. What is the total amount to be repaid? What is the interest?

Answer 1

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$64000\\ r=rate\to 12.5\%\to (12.5)/(100)\dotfill &0.125\\ t=years\dotfill &4.5 \end{cases} \\\\\\ A = 64000[1+(0.125)(4.5)] \implies \boxed{A = 100000}~\hfill \underset{ Interest }{\stackrel{ 100000-64000 }{\boxed{36000}}}`