To finance her community college education, Sarah takes out a loan for $3700. After a year Sarah decides to pay off the interest, which is 5% of $3700. How much will she pay?
So, to solve this, we use this equation: 3700 + 0.05(3700) But, if we want to make it shorter: 1.05(3700) Now you just multiply(you may want to use a calculator) 1.05(3700) = 3885 She will pay $3885
