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vekshin1
3 years ago
13

Ariane borrows $300 on a 5−year loan. She is charged 5% simple interest per year. How much interest is she charged for 5 years?

What is the total amount she has to pay back?
Mathematics
1 answer:
AnnyKZ [126]3 years ago
6 0

Answer:

Interest = $75

Total to pay back = $375

Step-by-step explanation:

The total amount she will have to pay back is found by the formula:

= Amount borrowed * (1 + rate * years)

= 300 * ( 1 + 5% * 5)

= $375

The interest is therefore:

= Amount to be paid back - Amount borrowed

= 375 - 300

= $75

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