Question

QUESTION 4 Sofia took a short term loan on 31st March 2022 from a bank that charged 6.5% simple interest rate. He was paid RM5555 to settle the loan after 11 months. a) Calculate the amount of the loan. b) Calculate the amount of interest charged. (3 marks) (2 marks)​

Answer 1

Explanation:

a) To calculate the amount of the loan, we need to use the formula for simple interest:

I = Prt

Where I is the interest, P is the principal (the amount of the loan), r is the interest rate, and t is the time in years.

Since the loan was for 11 months, or 11/12 of a year, we can calculate the principal as:

P = I / (rt) = 5555 / (0.065 x 11/12) = RM75,000

Therefore, the amount of the loan was RM75,000.

b) To calculate the amount of interest charged, we can use the same formula and plug in the values we know:

I = Prt = 75,000 x 0.065 x 11/12 = RM4,354.17

Therefore, the amount of interest charged was RM4,354.17.