Question

Leah borrows 10,000 over 5 years at a simple intrest rate of 15%. How much intrest rate will she pay over 5year and how much will she pay back over the years

Answer 1

Answer:

She will pay 7500 as interest over 5 years .

She will pay 3500 over the year.

Step-by-step explanation:

Leah borrows 10,000 over 5 years at a simple interest rate of 15%.

Now, Principal(P)= 10,000

         Time(T)= 5 years

          rate percent (R)= 15%

Let, Interest be I

We know that, I = $\frac{P.R.T}{100}$

                    Or,I = (10000×15×5)÷100

                    ∴   I = 7500

  Amount = Principal + Interest

                = 10000 + 7500

                = 17500 for 5 years

Amount for one year = 17500÷5 = 3500