Question

Alexa borrows 10,000 from her aunt and they agree alexa owe her aunt after 2 years assuming that no payments are made during that time?

Answer 1

Data:

Initial amount: $10,000

5% simple interest

Time: 2 years

You can use the next formulas to find the amount Alexa owe her aunt since the borrow is with simple interest:

$\begin{gathered} F=A+I \\ \\ I=A\cdot\frac{r}{100}+t \end{gathered}$

F is the final amount

A is the initial amount

I is the interest

r is the rate of interest

t is the time in years

Find first the Interest:

$I=10,000\cdot\frac{5}{100}\cdot2=1,000$

Find the final amount:

$F=10,000+1,000=11,000$Then, Alexa owe her aunt after 2 years an amount of $11,000