$5,000 at a simple annual interest rate of 6.5% for 5 years. What is the total amount of interest Ms. Lee must pay?

$6625

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

Brackets Parenthesis Exponents Multiplication Division Addition Subtraction Left to Right

Algebra I

Simple Interest Rate Formula: A = P(1 + rt)

P is principle amountr is ratet is time (in years)

Step-by-step explanation:

Step 1: Define

Identify variables

P = 5000

r = 6.5% = 0.065

t = 5

Step 2: Find Interest

Substitute in variables [Simple Interest Rate Formula]:                                 A = 5000(1 + 0.065 · 5)(Parenthesis) Multiply:                                                                                      A = 5000(1 + 0.325)(Parenthesis) Add:                                                                                             A = 5000(1.325)Multiply:                                                                                                             A = 6625