The amount you would pay altogether if you borrow $500 for 5 years at
an annual interest rate of 7% is $945.
How much would you pay altogether?
The amount you would pay altogether is the sum of the amount borrowed and the interest.
Total value of the debt = interest + amount borrowed
Interest = $700 x 7% x 5 = $245
Total value of the debt = $245 + $700 = $945