Question

Mg mg borrowed a sum of ks 2000 from his friend on may 1 at rate of 5%. An emergency arose and he again borrowed Ks 1000 on september 24 at the same rate of interest. IF he returned his loan, along with interest ,how much was the total amount returned?

Answer 1

Step-by-step explanation and Answer

Since the interest rate is 5%, and the first loan was borrowed on May 1, we can calculate the interest on the first loan by using the formula:

Interest = Principal x Rate x Time

In this case, the principal is 2000, the rate is 5% (expressed as a decimal), and the time is (September 24 - May 1) = 4.5 months

So, Interest = 2000 x 0.05 x 4.5/12 = 50

The same applies to the second loan of 1000, so the interest on this loan is:

Interest = 1000 x 0.05 x (4.5/12) = 25

To find the total amount returned, we add the interest on both loans to the total principal borrowed:

total = 2000 + 1000 + 50 + 25 = 3075

Therefore, the total amount returned is Ks 3075