Question

Dream Loan Bank offers loans. Carrie borrows $10,500 to help start a business. The loan must be repaid at 4.5% simple interest over 10 years.
How much money will Carrie have to pay back?

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Answer 1

$~~~~~~ \textit{Simple Interest Earned Amount}\\\\A=P(1+rt)\qquad\begin{cases}A=\textit{accumulated amount}\\P=\textit{original amount given}\dotfill & \ 10500\\r=rate\to 4.5\%\to \frac{4.5}{100}\dotfill &0.045\\t=years\dotfill &10\end{cases}\\\\\\A=10500(1+0.045\cdot 10)\implies \boxed{A=15225}$