To calculate the total amount of money you will pay back for a loan, you can use the formula for simple interest. The formula to calculate total repayment is:
\[ \text{Total Repayment} = \text{Principal} + \text{Interest} \]
First, calculate the interest:
\[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \]
Given:
- Principal = $10,000
- Rate = 5% per year = 0.05
- Time = 3 years
Substituting the values:
\[ \text{Interest} = 10,000 \times 0.05 \times 3 = 10,000 \times 0.15 = 1,500 \]
Now, calculate the total repayment:
\[ \text{Total Repayment} = 10,000 + 1,500 = 11,500 \]
So, the total amount of money you will pay back is $11,500.