Final answer:
The total repayment on a ₱25,000 loan with 6% simple interest over five years would be ₱32,500, which is the sum of the original principal and the interest accrued over the period.
Step-by-step explanation:
To calculate the total amount that will be repaid on a loan after a period of time with a simple interest rate, you can use the formula: total repayment = principal + (principal × rate × time). In this case, the bank is charging 6% simple interest on a ₱25,000 loan for five years. Therefore, the interest can be calculated as follows:
Interest = ₱25,000 × 0.06 × 5 = ₱7,500
Adding the interest to the principal amount gives us the total repayment:
Total repayment = ₱25,000 + ₱7,500 = ₱32,500
Thus, the answer is b. ₱32,500.