Question

Mrs MacGregor took a personal loan of ($)8000 over three years. She repaid ($)325 per

month in that period.
How much did she repay in total?
How much interest did she pay in pounds?
At what rate was simple interest charged over the three years?

Answer 1

Explanation:

T= 3yrs= 36 months

Money paid per month = $325

(a)Money paid for 3yrs(36 months) = 325*36 = $11700

(b) Interest paid = Amount - Principal Amount

= 11700 - 8000

Interest paid = $3700

$1 = 0.73£

So Interest paid in pounds = 3700*0.73 = 2696.99 = 2697(approx)