Question

The sanctuary takes out a $12,500 loan to renovate its gift shop. At 5% simple interest, how much would the sanctuary need to pay back in total after 10 years? Enter your answer in the box.

Answer 1

Answer:

$18,750 is the amount sanctuary need to pay back in total after 10 years.

Step-by-step explanation:

Principal Amount = $12,500

Rate of Interest  = 5%

Time Period  = 10 years

SIMPLE INTEREST = $\frac{P \times R \times T}{100}$

So, here the SI  = $\frac{12,500 \times 5 \times 10}{100} =6,250$

or the simple interest on P = $6,250

Now,   Amount = Principal + Simple Interest

                            = $12,500 + $6,250  =  $18,750

Hence, $18,750 is the amount sanctuary need to pay back in total after 10 years.