Question

The sanctuary takes out a $12,500 loan to renovate its gift shop. At 5% simple interest, how much would the sanctuary need to pay back in total after 10 years? Enter your answer in the box.

Answer 1

18,750

Explanation:

Answer 2

$18,750 is the amount sanctuary need to pay back in total after 10 years.

Explanation:

Principal Amount = $12,500

Rate of Interest = 5%

Time Period = 10 years

SIMPLE INTEREST =
`(P * R * T)/(100)`

So, here the SI =
`(12,500 * 5 * 10)/(100)   =6,250`

or the simple interest on P = $6,250

Now, Amount = Principal + Simple Interest

= $12,500 + $6,250 = $18,750

Hence, $18,750 is the amount sanctuary need to pay back in total after 10 years.