Question

Alexa borrows $10,000 from her aunt and they agree Alexa will pay her back including 5% simple interest. How much more will Alexa owe her aunt after 2 years, assuming that no payments are made during that time?

Answer 1

Answer:

500

Step-by-step explanation:

Answer 2

Using simple interest, it is found that Alexa will owe her aunt $11,000 after 2 years.

The amount of money after t years in simple interest is modeled by:

$A(t) = A(0)(1 + rt)$

In which:

• A(0) is the initial amount.

• r is the interest rate, as a decimal.

In this problem:

• Alexa borrows $10,000 from her aunt and they agree, hence $A(0) = 10000$.

• 5% simple interest, hence $r = 0.05$.

• She will pay back after 2 years, hence $t = 2$.

Then:

$A(t) = A(0)(1 + rt)$

$A(t) = 10000[1 + 0.05(2)]$

$A(t) = 11000$

Alexa will owe her aunt $11,000 after 2 years.

To learn more about simple interest, you can take a look at https://brainly.com/question/25296782