To find the simple interest, we can use the formula:
Simple Interest = Principal x Rate x Time
Principal = $21,000
Rate = 5% = 0.05
Time = 9 years
Simple Interest = $21,000 x 0.05 x 9
Simple Interest = $9,450
Therefore, Kiara will have to pay back $9,450 in simple interest over the 9 years.
To find the total amount of money Kiara will have to pay back at the end of the 9 years, we add the principal and the simple interest:
Total amount = Principal + Simple Interest
Total amount = $21,000 + $9,450
Total amount = $30,450
Therefore, Kiara will have to pay back a total of $30,450 at the end of the 9 years.
Kiara borrowed $21,000 at 5% interest to be paid back in 9 years. Find the simple interest. Include appropriate unit in final answer.
How much total money will Kiara have to pay back at the end of the 9 years?
1 answer