Question

Jen owes $75,000 to a lending agency. The debt grows with simple interest at a rate of 6% per year. How much will Jen owe in 5 years

Answer 1

$100350

Explanation:

Given data

Principal= $75,000

Rate= 6%

Time= 5 years

The expression for the amount is

A=P(1+r)^t

Substitute

A=75000(1+0.06)^5

A=75000(1.06)^5

A=75000*1.338

A=$100350

Hence the amount is $100350