Question

Please help me

Donna secured a $5000 loan from the bank to be paid in 3 years at a 5% rate.

How much interest did Donna pay?


A.1500


B.7,500


C.750


D.15,000

Answer 1

\[5000*\frac{ 5 }{ 100 } = \frac{ 25000 }{ 100 } = 250\]
This is the interest in one year
To spread it over 3 years you multiply by 3
\[250*3=750\]

Answer 2

\(\bf interest = principal\times rate(\textit{in decimals})\times time(\textit{years})\\\quad \\

balance = balance + interest
\)

Answer 3

Thank you both