Question

ramel borrows $4,000 from his local credit union, to be repaired with3.75% annual interest over 5 years, How Much money will ramel have paid back after 5 years

Answer 1

assuming is simple interest

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$4000\\ r=rate\to 3.75\%\to (3.75)/(100)\dotfill &0.0375\\ t=years\dotfill &5 \end{cases} \\\\\\ A=4000[1+(0.0375)(5)] \implies A=4000(1.1875)\implies A = 4750`