What is the total interest Logan will pay over five years at a 5% interest rate?

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To determine the total interest paid over five years at a 5% interest rate, it’s essential to consider how interest typically accumulates. In this case, if we're dealing with simple interest, the total interest can be calculated with the formula:

Total Interest = Principal × Rate × Time.

However, if no specific principal amount is provided, we can still deduce the overall interest based on the percentage rates given in the options.

If Logan pays 5% each year on the principal for five years, the total interest would indeed amount to 25%, calculated as 5% per year multiplied by 5 years. This means that the total percentage of interest paid over the five-year period is effectively illustrative of accumulating that 5% annually.

The choice indicating 10% does not accurately reflect the compounded nature of interest or the straightforward accumulation over the given time frame, making it an unsuitable selection for this question.

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