Question

Ms. Lee takes out a loan to start a business. She borrows $5,000 of a simple annual interest rate of 6. 5% for 5 years. What is the total amount of interest Ms Lee must pay

Answer 1

A = $6,625.00

Explanation:

A = P(1 + rt)

A = 5000(1 + (0.065 × 5)) = 6625