Alright, let's solve this problem step-by-step.
### Finding the Simple Interest
1. Determine the principal amount (P):
The principal amount (the initial amount of money borrowed) is [tex]$5000.
2. Determine the annual interest rate (r):
The annual interest rate is given as 5%, which as a decimal is 0.05.
3. Determine the time period (t):
The time period for which the money is borrowed is 2 years.
4. Use the simple interest formula:
Simple interest (SI) is calculated using the formula:
\[ \text{SI} = P \times r \times t \]
Plugging in the values:
\[ \text{SI} = 5000 \times 0.05 \times 2 \]
5. Calculate the simple interest:
\[ \text{SI} = 5000 \times 0.05 \times 2 = 500.0 \]
So, the simple interest for borrowing $[/tex]5000 at 5% per annum for 2 years is [tex]$500.0.
### Finding the Total Amount to be Paid
1. Calculate the total amount:
The total amount to be paid (A) at the end of the borrowing period includes the principal amount and the interest accrued.
The formula to calculate the total amount is:
\[ \text{A} = P + \text{SI} \]
2. Plug in the values:
\[ \text{A} = 5000 + 500.0 \]
3. Calculate the total amount:
\[ \text{A} = 5500.0 \]
So, the total amount to be paid after 2 years is $[/tex]5500.0.
### Summary
- Simple Interest (SI): [tex]$500.0
- Total Amount (A) to be paid after 2 years: $[/tex]5500.0
Therefore, the simple interest for borrowing [tex]$5000 at 5% per annum for 2 years is $[/tex]500.0, and the total amount that needs to be paid after 2 years is $5500.0.
