1-3) If a person borrowed P80,000 at an annual simple interest rate of 10.25% for 18 months, how much interest should he pay?
4-6) A loan of P25,000 is made for a period of 16 months at a simple interest of 7.5% annually Determine the amount to be repaid after the loan period.
Note : Rounding off to the nearest hundredth should be done only at the final answer.
can you guys answer this question. THANKS
4-6) A loan of P25,000 is made for a period of 16 months at a simple interest of 7.5% annually Determine the amount to be repaid after the loan period.
Note : Rounding off to the nearest hundredth should be done only at the final answer.
can you guys answer this question. THANKS
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Answer:
1-3) The interest is P 12,300
4-6) The interest is P 27,500
Step-by-step explanation:
1-3: Use the formula: I = PRT
Given: P = 80,000
R = 10.25% or 0.1025
T = 18 months
Note that T is in years, so we divide 18 months by 12
4-6: Use the formula: I = PRT
Given: P = 25,000
R = 7.5% or 0.075
T = 16 months
Note that T is in years , so we divide 16 months by 12
Lastly , we will add the principal and the interest to solve the final amount of money to be repaid.