Question

A man borrows $800 for 2 years at a simple interest rate of 20%. What is the total amount that must be repaid

Answer 1

Answer:
`\$1120`

Explanation:

Given

Man borrows $800 for 2 years

Rate of interest is R=20%

Simple interest is given by

`\Rightarrow S.I.=(P* R* T)/(100)`

Insert the values

`\Rightarrow S.I.=(800* 20* 2)/(100)\\\\\Rightarrow S.I.=\$320`

So, total payable amount is

`\Rightarrow 800+320\\\Rightarrow \$1120`