Question

Monique borrows $5000 for 3 years at 8% per annum simple interest.

Answer 1

Answers:

• a)  $1200 in interest is charged.
• b)  $6200 must be paid back in total.

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Work Shown:

a)

i = P*r*t

i = 5000*0.08*3

i = 1200 is charged in simple interest

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b)

She must pay back the amount borrowed ($5000) which is the principal as well as the interest calculated in part a) earlier.

The total amount she must pay back is 5000+1200 = 6200 dollars

Answer 2

Answer:

1200 dollars for interest, she must pay 6200

Step-by-step explanation:

8 percent of 5000 is 400 times 3 (years) is 1200