<PRE><B>Question 1117487</B>
Rita wants to buy a new car but needs money for the down payment. Her parents agree to lend her money at an annual rate of 5%, charged as simple interest. 
They lend her $7000 for 2years. She makes no payments except the one at the end of that time.
How much total interest will rita have to pay?
I = P*r*t = 7000*0.05*2 = $70.00
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What will the total repayment amount be(including interest rate?
A(t) = P(1+rt)
A(2) = 7000(1+0.05*2) = 7000+ 7000*0.05*2 = $7070.00
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Cheers,
Stan H.
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