Question

.To help him start a business, Cameron took out a $10,000 loan from a bank. The loan has an annual interest rate of 5%. What expectation should Cameron have?

Answer 1

`A = 10,000(1.05t)` where t is in years

Explanation:

I'm going to assume that the expectation that Cameron has is the amount of money after t years.

We can use the simple interest formula
`A = P(1+rt)` where A is the final amount, P is the principal, r is the rate, and t is time.

We can plug in 10,000 for P and 0.05 for r, giving us

`A = 10,000(1.05t)`