Question

Mia borrowed 5,000 from her grandparents to pay college expenses. She pays them $125 each month, and simple interest at an annual rate of 5% on the remaining balance of the loan at the end of each year. For how many years will she pay interest?

Answer 1

25×12=300 for the year
5000-300=4700

5%×4700=235
235÷25=9.4