Question

Type your answer into the box. Kay borrows £5,000 over 1 year. The interest rate is 15% per year. How much interest will she have to pay in total? CH​

Answer 1

Explanation:

Since the interest rate is 15%, she'll have to pay 15% of the principal per yar, which is £5000 x 15 / 100 = £750. And since she borrows it for only one years, that total amount of interest will be £750 x 1 = £750.

Answer 2

£750

Explanation:

The interest Kay will have to pay can be calculated using the simple interest formula:

interest = principal x rate x time

where the principal is the amount borrowed, the rate is the annual interest rate, and the time is the duration of the loan in years.

In this case, the principal is £5,000, the rate is 15% per year, and the time is 1 year. Substituting these values into the formula, we get:

interest = 5000 x 0.15 x 1 = £750

Therefore, Kay will have to pay £750 in interest over the course of the one-year loan.