if you borrow $4,500 for 7 years at an annual interest rate of 5%, what is the total amount of money you…

Explanation:

Step1: Identify the simple - interest formula

The formula for simple interest is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Convert the interest rate to decimal

Given $r = 5%=0.05$, $P=$4500$, and $t = 7$ years.

Step3: Calculate the interest

$I=Prt=4500\times0.05\times7 = 4500\times0.35=$1575$.

Step4: Calculate the total amount

The total amount $A$ to be paid back is the sum of the principal and the interest, so $A=P + I$. Substitute $P = 4500$ and $I = 1575$ into the formula: $A=4500+1575=$6075$.

Answer:

$6075$