Question

Julia takes out a loan to buy a new car. She borrows £8000 over 5 years at a simple interest rate of 10%.

Calculate how much interest she will pay.

Answer 1

here,

principle(p)=£8000

time(t)=5 years

rate(r)=10%

now,

Interest=PTR/100

=8000 x 5 x 10/100

=£4000

Explanation:

Answer 2

Julia will pay £4000 as interest.

Step-by-step explanation:

As per given question we have provided that :

• ➣ Principal = £8000
• ➣ Time = 5 years
• ➣ Rate = 10%

Here's the required formula to find the Principal :

`{\longrightarrow{\pmb{\tt{I= (PRT)/(100)}}}}`

• ↝ I = Interest
• ↝ P = Principal
• ↝ R = Rate
• ↝ T = Time

Substituting all the given values in the formula to find the Principal :

`{\implies{\sf{Interest= (PRT)/(100)}}}`

`{\implies{\sf{Interest= (P * R * T)/(100)}}}`

`{\implies{\sf{Interest= (8000 * 10 * 5)/(100)}}}`

`{\implies{\sf{Interest= \frac{80 \cancel{00} * 10 * 5}{1 \cancel{00}}}}}`

`{\implies{\sf{Interest= 80 * 10 * 5}}}`

`{\implies{\sf{Interest= 800 * 5}}}`

`{\implies{\sf{\underline{\underline{Interest = 4000}}}}}`

Hence, the interest is £4000.

`\rule{300}{2.5}`