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If you borrow $10,000 for 3 years at annual interest rate of 5%, what is total amount you will pay back?

User Zod
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Final answer:

The total amount you will pay back is $11,500.

Step-by-step explanation:

To calculate the total amount you will pay back, you need to add the principal amount (the amount you borrowed) to the interest. The formula to calculate interest is:

Interest = Principal x Rate x Time

In this case, the principal is $10,000 and the rate is 5% (0.05 in decimal form). Since the loan is for 3 years, the time is 3.

Using the formula, the interest would be $10,000 x 0.05 x 3 = $1,500. Therefore, the total amount you will pay back is $10,000 (the principal) + $1,500 (the interest) = $11,500.

User Moesef
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