Question

Robert gets a loan from his bank. He agrees to borrow £6 000 at a fixed annual simple interest rate of 7%. He also agrees to pay the loan back over a 10-year period. How much money in total will he have paid back at the end of the 10 years?​

Answer 1

By formula:-

SI= PTR/100

A=I+P

Answer 2

Given:

Robert gets a loan from his bank he agrees to borrow £6000 at a fixed annual simple interest rate of 7% he also agrees to pay the money back over a 10 year period.

To Find:

How much money in total will he have paid back at the end of the 10 years?

Solution:

We know that,

`\text{Simple interest}=\frac{\text{P}*\text{R}*\text{T}}{100}`

Here, we have

`\text{Principle}=\£6000`

`\text{Rate}=7\%`

`\text{Time}=10\ \text{years}`

Substituting these values, we get

`\text{SI} = (6000*7*10)/(100)`

`= (420000)/(100)`

`= 4200`

`\text{Amount = Principal + Simple Interest}`

`= 6000 + 4200`

`= \£10200`

Hence, Robert would have paid back £10200 at the end of the 10 years.