choco borrowed $10 000.00 from a bank for 4 years at 8 per cent per annum. calculate simple interest that choco should pay and find how much she had to repay for the four years altogether
I = PRT
I = 10,000 * 0.08 * 4
I = 3,200
Add the interest to the principal to find the total owed.
thank you
You're welcome.
To calculate the simple interest that Choco should pay, you can use the formula:
Simple Interest = Principal x Rate x Time
Given:
Principal (P) = $10,000.00
Rate (R) = 8% per annum (expressed as a decimal, 0.08)
Time (T) = 4 years
Substituting the values into the formula:
Simple Interest (I) = $10,000.00 x 0.08 x 4 = $3,200.00
Therefore, Choco should pay $3,200.00 as the simple interest.
To find out how much she has to repay altogether for the four years, we need to add the simple interest to the principal amount:
Total Repayment = Principal + Simple Interest
Total Repayment = $10,000.00 + $3,200.00 = $13,200.00
So, Choco has to repay a total of $13,200.00 for the four years altogether.