Question

Belle borrowed $18.275 to buy a new car. The interest rate she agreed to pay is 5%. If she takes 5 years to pay back the loan, how much will she owe?​

Answer 1

$95943.75

Explanation:

(assuming that its actually 18,275 and not 18.275)

18,275*1.05(5)

the amount borrowed (18,275)* the interest rate (1.05) *the number of years (5)

Answer 2

$22843.75

Explanation:

I'm assuming that $18.275 is $18,275

First, converting R percent to r a decimal

r = R/100 = 5%/100 = 0.05 per year,

then, solving our equation

I = 18275 × 0.05 × 5 = 4568.75

I = $ 4,568.75

The simple interest accumulated

on a principal of $ 18,275.00

at a rate of 5% per year

for 5 years is $ 4,568.75.