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To solve these questions, let’s break down the details provided in the problem and use the simple interest formula.

### Information Given:
1. **Principal (P)**: $5000
2. **Interest Rate (R)**: 4% per year
3. **Time (T)**: 6 years
4. **Interest Type**: Simple Interest

### Simple Interest Formula:
The formula for calculating simple interest is:
\[
\text{Interest} = P \times R \times T
\]
where:
- $ P $ is the principal amount,
- $ R $ is the rate of interest per year (in decimal form),
- $ T $ is the time in years.

#### Converting Interest Rate to Decimal:
4% = 0.04

#### Calculation of Simple Interest:
\[
\text{Interest} = 5000 \times 0.04 \times 6 = 5000 \times 0.24 = 1200
\]
So, the total interest Laura will have to pay is **$1200**.

### Total Repayment Amount (Including Interest):
The total repayment is the sum of the principal and the interest:
\[
\text{Total Repayment} = P + \text{Interest} = 5000 + 1200 = 6200
\]
Thus, Laura will need to repay a total of **$6200**.

### Final Answers:
- **(a) Total Interest**: $1200
- **(b) Total Repayment Amount**: $6200

Would you like further details or have any questions about the calculations?

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Here are some related questions for further exploration:

1. How would the total repayment change if the interest was compounded annually instead of simple?
2. What if the interest rate was 5% instead of 4%—how much more would Laura have to pay?
3. How does the repayment amount vary if the loan period is 10 years instead of 6 years?
4. What would the interest be if Laura made annual payments instead of a lump sum at the end?
5. How can simple interest be advantageous compared to compound interest?

**Tip**: Always convert percentage interest rates to decimals by dividing by 100 before using in formulas!

Laura wants to buy a new house but needs money for the down payment. Her parents agree to lend her money at an annual rate of 4%, charged as simple interest. They lend her $5000 for 6 years. She makes no payments except the one at the end of that time.

(a) How much total interest will Laura have to pay?
(b) What will the total repayment amount be (including interest)?

Learn how to calculate the simple interest on a $5000 loan with a 4% annual rate over 6 years. This problem provides step-by-step solutions to find the total interest and repayment amount. Ideal for students in Grades 7-9.

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