Question

A bank charges 12% simple interest p.a. on a cash loans for R10 000,must repay the loan over 4 years.

Calculate the interest which is gonna be paid to the loan?

Answer 1

$4800

Explanation:

Let's use the simple interest formula, P(1+rt), to find the final amount of the loan

10000(1+.12*4) = 14800, the final amount

14800 - 10000 = 4800 total in interest