A friend lends you $280, which you agree to repay with 5% interest. How much will you have to repay? How much of that was interest?

Answer 1

280 x (0.05) = $14 interest

total repayment = 280 + 14 = $294

of that total, the interest was about 4.8%

5% of 280 is $14, but

"only" about 4.8% of $294 is $14