Answer: $12,622.68 after 1 year
Explanation:
To find out how much money Vikrant will have to pay after 1 year for borrowing $12,600 at an 18% per annum interest rate, you can use the following formula for simple interest:
Simple Interest (SI) = (Principal Amount × Rate × Time) / 100
Where:
- Principal Amount (P) = $12,600
- Rate (R) = 18% per annum, which can be written as 0.18 in decimal form
- Time (T) = 1 year
Now, plug these values into the formula:
SI = (12,600 × 0.18 × 1) / 100
SI = (2,268) / 100
SI = $22.68
So, Vikrant will have to pay $22.68 in interest after 1 year. To find the total amount he will need to repay, you simply add the interest to the principal:
Total Amount = Principal + Interest
Total Amount = $12,600 + $22.68
Total Amount = $12,622.68
Vikrant will need to pay a total of $12,622.68 after 1 year.