Answer:
a) To calculate the total amount to be repaid, we need to add the interest to the principal amount.
The formula for simple interest is:
I = P * r * t
where I is the interest, P is the principal amount, r is the interest rate per year, and t is the time in years.
In this case, P = $9000, r = 12% = 0.12, and t = 5 years.
So, the interest on the loan is:
I = $9000 * 0.12 * 5 = $5400
The total amount to be repaid is:
Total amount = Principal + Interest = $9000 + $5400 = $14400
Therefore, the total amount to be repaid is $14,400.
b) To calculate the monthly repayment amount, we need to divide the total amount to be repaid by the number of months in 5 years (60 months), since the repayments are spread equally over 5 years.
Monthly repayment amount = Total amount to be repaid / Number of months
= $14,400 / 60
= $240
Therefore, the monthly repayment amount if the repayments are spread equally over the 5 years is $240.