Answer:
Total amount = $6125
Step-by-step explanation:
Given the following data;
Principal = $5000
Interest rate = 7.5%
Time = 3 years
To find the simple interest;
Mathematically, simple interest is calculated using this formula;
[tex] S.I = \frac {PRT}{100} [/tex]
Where;
S.I is simple interest.
P is the principal.
R is the interest rate.
T is the time.
Substituting into the equation, we have;
[tex] S.I = \frac {5000 * 7.5 * 3}{100} [/tex]
[tex] S.I = \frac {112500}{100} [/tex]
S.I = $1125
Next, we find the total amount to be paid back;
Total amount = principal + simple interest
Total amount = 5000 + 1125
Total amount = $6125
