Posted by **Gary** on Wednesday, February 10, 2010 at 4:44pm.

If I loaned someone $5000 four years ago at an interest rate of 5%, how much do they owe me now?

- Finance -
**Ms. Sue**, Wednesday, February 10, 2010 at 4:53pm
If it's simple interest and the rate is 5% yearly, then --

5,000 * 0.05 = 250

250 * 5 = 1,250

5,000 + 1,250 = 6,250

The answer would be different if you charged compound interest.

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