Final answer:
The interest of a $1750 loan at 4.8% per year over five years is $420, and the total amount to be repaid is $2170.
Step-by-step explanation:
To calculate both the interest and the total amount of a loan, we use simple interest formula unless stated otherwise. The simple interest formula is Interest = Principal × rate × time. Here, the principal is $1750, the annual interest rate is 4.8% (or 0.048 when expressed as a decimal), and the time is 5 years.
First, let's calculate the interest:
Interest = $1750 × 0.048 × 5
Interest = $420
Now let's find the total amount to be repaid on the loan. This includes both the principal and the interest:
Total amount = Principal + Interest
Total amount = $1750 + $420
Total amount = $2170
Therefore, the interest is $420 and the total amount to be repaid after five years is $2170.