3) In order to determine the interest Joanna will pay, use the following formula:
I = P*r*t
where,
P: principal = $5000
r: interest rate in decimal form = 0.05
t: time in years = 5
Replace the previous values into the formula for I and simplify:
I = ($5000)(0.05)(5) = $1250
Hence, Joanna will pay $1250 in interest