Example
You borrowed 10000 at a simple rate of 5% for 3 years.
- Every year, you have to pay `\$10000 \times 5\% = \$500` interest.
- The last year you also have to give back \$10000
In total, you have to give back: $$10000 \left( 1 + 0.05 \times 3 \right) = 1150$$