Question

2. Solve the following problems involving simple interest. Recall

Answer 1

Answer:

A = $56025

Step-by-step explanation:

Given that,

An investor decides to offer a business owner a $45,000 loan at simple interest of 3.5%  per year.

Principal, P = 45,000

Rate of interest, R = 3.5%

We need to find the total amount the investor will receive when the loan is  repaid after 7 years.

The formula for the simple is given by :

$I=\dfrac{PRT}{100}\\\\=\dfrac{45000\times 3.5\times 7}{100}\\\\=\ 11025$

We know that,

Amount = Principal + simple interest

So,

A = 45,000 + 11025

A = $56025

So, the required amount is equal to $56025.