a student borrow $12000 at a simple interest rate 4.5% how much interest is owed at the end of 5 years
what amount of money must be repaid
I = PRT
I = 12,000 * 0.045 * 5
I = 2,700
12,000 + 2,700 = ?
To find the amount of interest owed at the end of 5 years, we can use the simple interest formula:
Interest = Principal * Rate * Time
Given:
Principal amount (P) = $12000
Rate of interest (R) = 4.5% = 0.045 (decimal)
Time (T) = 5 years
Calculating interest:
Interest = $12000 * 0.045 * 5
Interest = $2700
Therefore, the interest owed at the end of 5 years is $2700.
To find the amount of money that must be repaid, we simply add the principal amount to the interest owed.
Amount to be repaid = Principal + Interest
Amount to be repaid = $12000 + $2700
Amount to be repaid = $14700
Thus, the amount of money that must be repaid is $14700.
To calculate the interest owed at the end of 5 years, we need to use the formula for Simple Interest:
I = P * r * t
Where:
I = Interest
P = Principal amount (the amount borrowed)
r = Rate of interest (in decimal form)
t = Time period (in years)
Let's plug in the values:
P = $12,000
r = 4.5% (or 0.045 as a decimal)
t = 5 years
Now we can calculate the interest owed:
I = 12,000 * 0.045 * 5
I = $2,700
Therefore, the interest owed at the end of 5 years is $2,700.
To determine the total amount of money that must be repaid, we need to add the interest to the principal.
Total amount = Principal + Interest
Total amount = $12,000 + $2,700
Total amount = $14,700
Thus, the total amount of money that must be repaid is $14,700.