Final answer:
To find the total repayment on a $5,000 loan at 3% annual interest, use the simple interest formula I = P × r × t. Assuming the loan term is one year, the total repayment would be $5,150, combining the $5,000 principal and $150 in interest.
Step-by-step explanation:
To calculate the total repayment by Julian Savea on a $5,000 loan at an annual interest rate of 3%, we need to use the formula for calculating simple interest. The formula is I = P × r × t, where I is the interest, P is the principal amount (the initial loan), r is the annual interest rate expressed as a decimal, and t is the time in years the loan is held.
In this case, we need to make some assumptions as the time period for the loan hasn't been specified. For instance, if we assume the loan is to be repaid over one year, the interest is calculated as follows:
$5,000 × 0.03 × 1 = $150
The total repayment would be the principal plus the interest, so:
$5,000 + $150 = $5,150.
This is the total amount Julian Savea would need to repay after one year. If the loan term were different, the time factor t in the formula would change accordingly.