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Answer :
Sure! Let's solve the problem step-by-step.
1. Understanding the Problem:
- We have borrowed [tex]$20,000 for a period of 5 years.
- The annual interest rate is 4.5%.
2. Calculating the Simple Interest:
- The formula for calculating simple interest is:
\[
I = P \times R \times N
\]
where:
- \( I \) is the interest,
- \( P \) is the principal amount (initial amount borrowed),
- \( R \) is the rate of interest per year (as a decimal),
- \( N \) is the number of years.
3. Plugging in the Values:
- Principal (\( P \)) = $[/tex]20,000
- Rate ([tex]\( R \)[/tex]) = 4.5% = 0.045 (as a decimal)
- Number of years ([tex]\( N \)[/tex]) = 5
Using the formula:
[tex]\[
I = 20000 \times 0.045 \times 5
\][/tex]
The interest calculated is [tex]$4,500.
4. Total Amount to be Paid Back:
- To find out how much needs to be paid back in total, add the interest to the principal:
\[
\text{Total Payment} = 20000 + 4500 = 24500
\]
5. Final Answer:
- The amount of simple interest charged over the 5 years is $[/tex]4,500.
- The total amount that will need to be paid back is $24,500.
Feel free to ask if you have any more questions!
1. Understanding the Problem:
- We have borrowed [tex]$20,000 for a period of 5 years.
- The annual interest rate is 4.5%.
2. Calculating the Simple Interest:
- The formula for calculating simple interest is:
\[
I = P \times R \times N
\]
where:
- \( I \) is the interest,
- \( P \) is the principal amount (initial amount borrowed),
- \( R \) is the rate of interest per year (as a decimal),
- \( N \) is the number of years.
3. Plugging in the Values:
- Principal (\( P \)) = $[/tex]20,000
- Rate ([tex]\( R \)[/tex]) = 4.5% = 0.045 (as a decimal)
- Number of years ([tex]\( N \)[/tex]) = 5
Using the formula:
[tex]\[
I = 20000 \times 0.045 \times 5
\][/tex]
The interest calculated is [tex]$4,500.
4. Total Amount to be Paid Back:
- To find out how much needs to be paid back in total, add the interest to the principal:
\[
\text{Total Payment} = 20000 + 4500 = 24500
\]
5. Final Answer:
- The amount of simple interest charged over the 5 years is $[/tex]4,500.
- The total amount that will need to be paid back is $24,500.
Feel free to ask if you have any more questions!
Thanks for taking the time to read Marks are awarded for listing each component showing calculations and providing the final solution 1 tex 20000 tex is borrowed for 5 years at an. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!
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