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. Beyonce went to the mall and saw a massage chair that she would have to take a loan out for $7,500 to purchase. The bank said that she could get a simple interest rate of 10% for 5 years. What is the total amount that Beyonce will pay for the chair?

Answer :

The simple interest formula is:

[tex]A=P\cdot(1+rt)[/tex]

in which P is the principal, r is the rate of the loan and t is the time for the loan.

Then

[tex]\begin{gathered} A=7500\cdot(1+(0.1\cdot5)) \\ A=7500+3750 \\ A=11250 \end{gathered}[/tex]

She will pay $11,250 for the chair

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