Vin borrowed K10000 from a bank at a simple interest of 12% per year which she agrees to repay after 3 years. What is the total amount of interest Von would pay?
The total interest Vin would pay can be calculated using the formula:
Interest = Principal × Rate × Time
Where:
Principal = K10000
Rate = 12% = 0.12 (converted to decimal)
Time = 3 years
Interest = 10000 × 0.12 × 3
Interest = K3600
Therefore, Vin would pay a total of K3600 in interest.
To calculate the total amount of interest Vin would pay, we need to use the formula for simple interest:
Simple Interest = Principal * Rate * Time
In this case, the principal (P) is K10,000, the rate (R) is 12% (which can be expressed as 0.12), and the time (T) is 3 years.
Plugging these values into the formula, we get:
Simple Interest = 10,000 * 0.12 * 3
Simplifying the calculation, we have:
Simple Interest = 3,600
Therefore, Vin would pay a total amount of K3,600 in interest.