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

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.

To calculate the amount owed after four years, you would need to consider the principal amount of $5000 and the interest rate of 5%. The interest accumulates over time, so we need to calculate the total interest first.

The formula to calculate the interest is:
Interest = Principal × Rate × Time

In this case, the principal is $5000, the rate is 5% (which can be represented as 0.05 in decimal form), and the time is 4 years.

Interest = $5000 × 0.05 × 4 = $1000

The interest earned over four years is $1000.

To find the total amount owed, you need to add the principal and the interest:

Total Amount Owed = Principal + Interest
Total Amount Owed = $5000 + $1000 = $6000

Therefore, the person owes you $6000 now.