Question

Charles lends Php 7,500 to Stacy at an interest rate of 10% per annum. He also lends the same amount to Torrie at an interest rate of 12% per annum. How much is the total interest that Charles will receive after two years?

Answer 1

Answer: Php. 3,300

Explanation:

Assuming this is simple interest, the amount he would earn from Stacy after 2 years is:

= Amount loaned out * Interest rate * Number of years

= 7,500 * 10% * 2

= Php 1,500

Amount from Torrie:

= 7,500 * 12% * 2

= Php. 1,800

The total interest received is:

= 1,500 + 1,800

= Php. 3,300