Question

Joanna wants to buy a car. Her parents loan her 5,000 for 5 years at 5% simple interest. How much will Joanna pay in imterest?

Answer 1

Hello!

Data:

I = ?
P = $5000
rate = 5% = 0.05
t = 5

$I = P*r*t$
$I = 5000*0.05*5$
$\boxed{\boxed{I = 1.250}}\end{array}}\qquad\quad\checkmark$

Answer 2

If she pays 5% a year for interest on a $5,000 loan she will pay $1,250 

$225 a year for 5 years