Question

Olivia borrowed $5,000 for 5 years at 5% simple interest.

Answer 1

The answer is $1250

Explanation:

Solution,

Principle (P) = $ 5,000

Time (T) = 5 years

Rate(R) = 5 %

Simple Interest (I) = ?

Now,

We have,

Simple Interest (I) = P×T×R/ 100

= 5,000×5×5/100

= $1250