Question

marsha waide borrows 5,000 and agrees to pay it back in 2 years . if the simple interst rate is 13% ,find the total amount she pays back

Answer 1

Answer:

You want to calculate the interest on $5000 at 13% interest per year after 2 year(s).

The formula we'll use for this is the simple interest formula.

Where:

P is the principal amount, $5000.00.

r is the interest rate, 13% per year, or in decimal form, 13/100=0.13.

t is the time involved, 2....year(s) time periods.

So, t is 2....year time periods.

To find the simple interest, we multiply 5000 × 0.13 × 2 to get that:

The interest is: $1300.00

Usually now, the interest is added onto the principal to figure some new amount after 2 year(s),

or 5000.00 + 1300.00 = 6300.00. For example:

If you borrowed the $5000.00, you would now owe $6300.00