5
practice testMultiple Choice

Practice Test

Question 5 • Mathematics for Data and Financial Literacy

A bank is offering a simple interest rate of 4 point 8 percent each year on loans of 10 dollars comma 000 If the loan is repaid in 5 years, what is the total amount repaid?

Answer
A
10 dollars comma 480
B
12 dollars comma 400
C
480 dollars
D
2 dollars comma 400

Explanation

Simple interest is calculated as principal × rate × time: $10,000 × 0.048 × 5 = $2,400 in interest. Add the interest to the original loan: $10,000 + $2,400 = $12,400. The total amount repaid is $12,400, choice B.

AI-written and checked against the verified answer.

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