Question

Ariane borrows $200 on a 5 year loan she is charged 5% simple interest how much interest is she charged for 5 years what is the total amount she has to pay back​

Answer 1

Interest: $50 | Total: $250

Explanation:

You are going to want to use the simple interest formula for this. The one below is modified for solving the interest earned.

`I = Prt`

I = interest amount

P = principal amount

r = interest rate (decimal form)

t = time

Now we can plug in the values into the equation:

`I = 200(.05)(5)`

`I = 50`

This means that Ariane is charged $50 worth of interest. She has to pay back $250 total dollars.