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Interest Rate: 10% per annum Time period (in years) = 5 So now we will do the calculation this using the simple interest equation i.e Simple Interest = Principal * Interest Rate * Time Period Simple Interest =$5000 * 10%*5 =$2500 Total
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Mathematics is the study of numbers and their relationships.
According to this formula, the amount of interest is given by I = Prt, where P is the principal, r is the annual interest rate in decimal form, and t is the loan period expressed in years.
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