Question

In order to buy a new gadget, maria decided to borrow 5,000 at an annual simple interest rate of 5%. After two years, how much does she need to pay?

Answer 1

Answer: I = 500 rupees

Explanation:

First, converting R percent to r a decimal

r = R/100 = 5%/100 = 0.05 per year,

then, solving our equation

Formula:

I = Principal x rate x time

I = 5000 × 0.05 × 2 = 500

I = 500

The simple interest accumulated

on a principal of 5,000

at a rate of 5% per year

for 2 years is 500 rupees