Question

A business borrows money from the bank to carry out repairs in their shop. They borrow £10,000. The interest is 5%. They will pay off the loan in full in one year. How much is the total repayment?​

Answer 1

£10,500

Step-by-step explanation:

Amount paid will the principal amount plus interest.

Principal amount = £10,000.

Interest = p x r x t

r = interest rate : 5% or 0.05

t= 1 year

= £10,000 x 0.05 x 1

=£500

Total payment

= £10,000 + £500

=£10,500