A loan of $5000 is taken for 3 years at a simple interest rate of 9%. What will

A loan of $5000 is taken for 3 years at a simple interest rate of 9%. What will be the total amount to be paid back?

A loan of $5000 is taken for 3 years at a simple interest rate of 9%. What will be the total amount to be paid back?

Step 1: Identify the principal amount (the initial loan). In this case, it is $5000.
Step 2: Identify the interest rate. Here, it is 9%.
Step 3: Identify the time period for the loan. It is 3 years.
Step 4: Calculate the simple interest using the formula: Simple Interest = (Principal * Rate * Time) / 100.
Step 5: Plug in the values: Simple Interest = (5000 * 9 * 3) / 100.
Step 6: Calculate the simple interest: Simple Interest = (5000 * 27) / 100 = 1350.
Step 7: Calculate the total amount to be paid back by adding the principal and the interest: Total Amount = Principal + Interest.
Step 8: Plug in the values: Total Amount = 5000 + 1350.
Step 9: Calculate the total amount: Total Amount = 6350.

Simple Interest Calculation – Understanding how to calculate simple interest using the formula: Interest = Principal × Rate × Time.
Total Amount Calculation – Knowing how to find the total amount to be paid back by adding the principal to the calculated interest.