Question

To go on a summer trip Manuel borrows $200. He makes no payments until the end of 4 years, when he pays off the entire loan. The lender charges simple interest at an annual rate 5%

Answer 1

The total interest from a $5,000 loan after three years at a 6% simple interest rate is $900. To find the annual interest rate that yields $500 in simple interest on a $10,000 loan over five years, use the simple interest formula I = Prt; the rate is 0.1%.

Step-by-step explanation:

To calculate the total amount of interest accrued from a loan using simple interest, you can use the formula I = Prt, where I is the interest, P is the principal amount (the initial loan), r is the annual interest rate (in decimal form), and t is the time in years. For the first question:

• Principal (P): $5,000

• Annual interest rate (r): 6%

• Time (t): 3 years

Converting the interest rate from a percentage to a decimal:

r = 6% = 0.06

Now, applying the simple interest formula:

I = $5,000 × 0.06 × 3

I = $900

So, the total interest from a $5,000 loan after three years with a 6% simple interest rate is $900.

For the second question:

• Interest (I): $500

• Principal (P): $10,000

• Time (t): 5 years

Now, to find the annual interest rate (r), rearrange the simple interest formula:

r = I / (Pt)

r = $500 / ($10,000 × 5)

r = 0.001 or 0.1%

The annual interest rate charged on a loan of $10,000 for five years to receive $500 in simple interest is 0.1%.

Answer 2

A)40

B)240

Step-by-step explanation:

5% of 200 is 10

10*4 year=$40 interest

200+40=240 which is total

Im pretty sure