Final Answer:
Sania has to pay $18,000, which includes the principal amount of $16,000 and the interest accrued at the rate of 12.5% per annum.
Step-by-step explanation:
The total amount Sania has to repay comprises the principal and the interest accrued over the loan period. The formula for calculating the total amount payable on a loan is given by:
Total Amount
=
Principal
+
Principal
×
(
Rate of Interest
100
)
×
Time
Total Amount=Principal+Principal×(
100
Rate of Interest
)×Time
In this case, Sania took a loan of $16,000 at an annual interest rate of 12.5%. If we assume the loan period is for one year, we can substitute these values into the formula:
\text{Total Amount} = $16,000 + $16,000 \times \left(\dfrac{12.5}{100}\right) \times 1
Calculating this gives us the total amount Sania has to repay, which is $18,000.
Understanding the total repayment amount is essential for borrowers to plan their finances effectively. Sania's repayment includes not only the borrowed principal of $16,000 but also the interest amount, which is $2,000 in this case. This clarity helps individuals manage their financial commitments and ensures transparency in loan transactions.