Question

Kura needs to pay interest on her $16000 loan at 5.3% per annum for 182 days out of 365 days. How much will she owe after the year?

Answer 1

$422

Step-by-step explanation: Interest is 5.3% per annum that is (16000*5.3%)

=$848 for 365 days or per annum

For 182 days= (182/365)*848

=$422

Answer 2

The amount that Kura will owe at the end of the year=$16,423

Given:

Loan Amount=$16,000

Rate of interest=5.3%

Time period=182 days

To find:

Amount that Kura will owe at the end of the year

Step by Step Explanation:

Solution:

Formula used for calculating amount is given as

`\text { Amount Kura will owe after the end of year }=\text { Principle }+S . I`

Also Simple Interest S.I is given as

`S . I=(P N R)/(100)`

Where P=Principal amount or loan amount

N=Time period

R=Rate of interest

`S . I=(16,000 *\left((282)/(965)\right) * 5.3)/(100)`

`S . I=(16,000 * 0.4986 * 5.3)/(100)`

`S . I=(42281.3)/(100)`

S.I=422.813

Substitute the value of S.I in the main equation we get

`\text { Amount }=\text { Principal }+S . I`

Amount=16000 + 423

=$16,423

Result:

Hence, Kura will owe $16,423 after one year.