A woman borrows #20,000 for 4 weeks. She agrees to pay 25,000 back at the end of 4 weeks. How much interest does she pay over the 4 weeks
The woman pays a total of #5,000 in interest over the 4 weeks.
To find out the amount of interest the woman pays over the 4 weeks, we need to subtract the borrowed amount from the total amount paid back.
Total Amount Paid Back = Borrowed Amount + Interest
Given:
Borrowed Amount = #20,000
Total Amount Paid Back = #25,000
Interest = Total Amount Paid Back - Borrowed Amount
Interest = #25,000 - #20,000
Interest = #5,000
Therefore, the woman pays #5,000 in interest over the 4 weeks.