Question: Mr. Wilson lent $35,000 to Sam for 2$ years at $22 rate of interest per annum. How much will Sam repay at the end of $2 years?
Answer: $50,400
Explanation:
To calculate the amount Sam will repay at the end of 2 years, we need to consider the principal amount, the interest rate, and the duration.
Principal amount (P) = $35,000
Rate of interest (R) = 22% per annum
Duration (t) = 2 years
The formula to calculate the total amount repaid (A) is:
A = P + (P * R * t)
Substituting the given values into the formula:
A = $35,000 + ($35,000 * 0.22 * 2)
A = $35,000 + ($35,000 * 0.44)
A = $35,000 + $15,400
A = $50,400
Therefore, Sam will repay a total of $50,400 at the end of 2 years.