Sarah borrows $5575 on a 2 year loan at 3% simple interest. What will be the total amount Sarah has to pay back at the end of year 2?

$5909.50

Step-by-step explanation:

First, converting R percent to r a decimal

r = R/100 = 3%/100 = 0.03 per year,

then, solving our equation

I = 5575 × 0.03 × 2 = 334.5

I = $ 334.50

The simple interest accumulated

on a principal of $ 5,575.00

at a rate of 3% per year

for 2 years is $ 334.50.

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