Question

Ariana borrows $300 on a 6-year loan. she is charged 5% simple interest per year. How much interest is she charged for 6 years? what is the total amount she has to pay back?
Please fill your answers into in the following sentence.
"After 6 years, Ariane is charged $___ in interest. She pays a total amount of $___.

Answer 1

So first we need to find how much is 5% of 300 , which we can discover by dividing 30p by 100 and multiplying by 5.
300÷100 ×5 = 15
So every year she pays $15 of interests
To find out how much she'll pay in 6 years pf interest , we just need to multiply 15 by 6
which is 90.
Then just add 90 to the original loan (300) to discover the total she will pay:

After 6 years, Ariane is charged $90 in interest. She pays a total amount of $390.