On January 1, 2022, Jane borrowed ₱ 50, 000 at a 5% annual simple interest. The maturity date, or due date of the amount she borrowed with interest is on December 31, 2024. Compute for the total amount payable.

The formula for calculating simple interest is:

\[
I = P \times r \times t
\]

Where:
- \( I \) is the interest,
- \( P \) is the principal (₱50,000),
- \( r \) is the annual interest rate (5% or 0.05),
- \( t \) is the time in years.

### Step 1: Calculate the interest
Since Jane borrowed the money on January 1, 2022, and the maturity date is on December 31, 2024, the time period \( t \) is 3 years (from 2022 to 2024).

\[
I = 50,000 \times 0.05 \times 3 = 7,500
\]

### Step 2: Calculate the total amount payable
The total amount payable is the sum of the principal and the interest:

\[
A = P + I = 50,000 + 7,500 = 57,500
\]

Thus, the total amount payable by Jane on December 31, 2024, is **₱57,500**.

Would you like more details or have any questions?

Here are 5 related questions to explore further:
1. What would happen if the interest rate was compounded instead of simple?
2. How would the total payable amount change if Jane took 4 years to repay instead of 3?
3. What if Jane made partial payments during the loan period? How would that affect the interest?
4. How can we calculate the monthly payments for this loan with simple interest?
5. What happens if Jane wanted to repay earlier than December 31, 2024?

**Tip:** Always verify whether interest is simple or compounded, as this significantly affects the total payable amount.

On January 1, 2022, Jane borrowed ₱ 50,000 at a 5% annual simple interest. The maturity date, or due date of the amount she borrowed with interest is on December 31, 2024. Compute for the total amount payable.

Calculate the total amount payable on a ₱50,000 loan with 5% simple interest over 3 years. Learn how to apply the simple interest formula and find the total repayment, which amounts to ₱57,500. Ideal for students in Grades 6-8 studying basic interest concepts.

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