The total amount that must be repaid will be "$18,630".
Given values are:
Loan amount,
Interest rate,
Time to repay,
As we know, the formula of simple interest,
→ [tex]S.I = \frac{P\times n\times r}{100}[/tex]
By substituting the values, we get
→ [tex]= \frac{13500\times 4\times 9.5}{100}[/tex]
→ [tex]= \frac{513000}{100}[/tex]
→ [tex]= 5130[/tex] ($)
hence,
The total amount must be paid will be:
= [tex]Loan \ amount + Simple \ interest[/tex]
= [tex]13500+5130[/tex]
= [tex]18,630[/tex] ($)
Thus the above approach is correct.
Learn more about simple interest here:
https://brainly.com/question/22970684
