Your class decides to raise funds to build a new jungle gym that costs R15 000. You take a loan with 5% simple interest over 2 years. How much will you pay back in total?

The formula for simple interest is $I = P \times R \times T$, where $P$ is the principal amount, $R$ is the annual interest rate, and $T$ is the time in years.

$$I = \text{R}15\,000 \times 0.05 \times 2$$ $$I = \text{R}1\,500$$

The total amount to be paid back is the principal amount plus the simple interest.

$$A = P + I$$ $$A = \text{R}15\,000 + \text{R}1\,500$$ $$A = \text{R}16\,500$$

The total amount to be paid back is $\text{R}16\,500$.