Vina took out a personal loan of K5500 on 11 November 2014 and repaid the loan and the interest owing on 16 May 2015. If the interest charged for the loan was 8.25% p.a. calculate the total amount that was repaid. (Interest is not charged for 16 May.)
Initial date is 315 days.
Final date is 136 days.
First, we need to calculate the number of days Vina had the loan for:
Final date - Initial date = 136 days - 315 days = 219 days
Next, we calculate the total interest charged on the loan:
Interest = Principal x Rate x Time
Interest = 5500 x 0.0825 x (219/365) = 260.27
Finally, we calculate the total amount repaid by adding the principal and the interest:
Total amount = Principal + Interest
Total amount = 5500 + 260.27 = K5760.27
Therefore, the total amount that was repaid by Vina was K5760.27.