A woman borrows 100000 euro to improve her house. she borrows the money at 15% interest and repays it in full after three years. What interest will she pay?
PLEASE HELP
100,000 * 0.15 * 3 = ?
I thought it is suposed to be like this:
15/100*100,000 then you get the answer and the asnwer you get add with the number you multiplied with do the same thing for three times? Is it like that?
My answer is 45,000 euros.
What answer did you get?
well the asnwer according to my book is 520875 and I am gettign the wrong answer. I get 84762.5
I don't see how your book can be right. It doesn't make sense that she'd pay interest of five times the amount of the loan.
Check with your teacher.
To find out the interest the woman will pay, we need to calculate the interest amount for each year and then sum them up.
The formula to calculate simple interest is:
Interest = Principal × Rate × Time
In this case:
Principal (P) = 100,000 euro
Rate (R) = 15% (or 0.15 as a decimal)
Time (T) = 3 years
Let's calculate the interest for each year:
Year 1:
Interest1 = 100,000 × 0.15 × 1 = 15,000 euro
Year 2:
Interest2 = 100,000 × 0.15 × 1 = 15,000 euro
Year 3:
Interest3 = 100,000 × 0.15 × 1 = 15,000 euro
Now, let's sum up the interest for all three years:
Total Interest = Interest1 + Interest2 + Interest3 = 15,000 + 15,000 + 15,000 = 45,000 euro
Therefore, the woman will pay 45,000 euro in interest.