Question 826376
If the interest is simple interest,
each year 8% =(8/100=0.08}}} of the original $7,120.85 loan amount would be accrued.
a) Over 5 years the interest accrued would be 5 times that, or
${{{5*0.08*7120.85}}}= ${{{highlight(2848.34)}}} .
b) If no payments were due over the 5 years, and the loan is paid all at once after exactly 5 years, the total payment is
$7120.85 + $2848.34 = ${{{highlight(9969.19)}}} .