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

Answer:

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

Step-by-step 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

$A = 10,000(1.05t)$