To finance her community college education sarah takes out a loan for $2900. after a year she decides to pay off the interest which is 5% of $2900. how much will she pay

You want to calculate the interest on $2900 at 5% interest per year after 1 year (s). The formula we'll use for this is the simple interest formula, or:

I=P x r x t

Where:

P is the principal amount, $2900.00.

r is the interest rate, 5% per year, or in decimal form, 5/100=0.05.

t is the time involved, 1 ... year (s) time periods.

So, t is 1 ... year time periods.

To find the simple interest, we multiply 2900 * 0.05 * 1 to get that:

The interest is: $145.00