find the total amount due on a loan of N80,000.00 at 18percent simple interest at the end of 4months. (2)question is find the total amount due on a loan of N600,000.00 at 12percent simple interest at the end of 3years. Pls i need answer
To find the total amount due on a loan with simple interest, you can use the following formula:
Total Amount Due = Principal Amount + (Principal Amount * Interest Rate * Time)
Where:
- Principal Amount is the initial loan amount.
- Interest Rate is the interest rate per period.
- Time is the number of periods (months or years) the loan is taken for.
Now let's calculate the total amount due for each loan:
1) Loan of N80,000.00 at 18% simple interest at the end of 4 months:
Principal Amount = N80,000.00
Interest Rate = 18% or 0.18 (decimal form)
Time = 4 months
Total Amount Due = 80,000 + (80,000 * 0.18 * (4/12))
= 80,000 + (80,000 * 0.18 * 0.33)
= 80,000 + (80,000 * 0.0594)
= 80,000 + 4,752
= N84,752.00
Therefore, the total amount due on the loan after 4 months is N84,752.00.
2) Loan of N600,000.00 at 12% simple interest at the end of 3 years:
Principal Amount = N600,000.00
Interest Rate = 12% or 0.12 (decimal form)
Time = 3 years
Total Amount Due = 600,000 + (600,000 * 0.12 * 3)
= 600,000 + (600,000 * 0.12 * 3)
= 600,000 + (600,000 * 0.36)
= 600,000 + 216,000
= N816,000.00
Therefore, the total amount due on the loan after 3 years is N816,000.00.