Question

zuma took a loan of 630 000 from the bank. he will repay the loan over 48 months at 9.5% per annum simple interest. how much interest will zuma pay on the loan​

Answer 1

Interest amount = 239400

Explanation:

Below is the calculation of interest amount:

Given the loan amount or present value = 630000

Time period = 48 months or 4 years

Interest rate give = 9.5%

Total amount = P ( 1 + rt)

P = 630000

r = 9.5%

t = 4 years

Total amount = 630000 ( 1 + 9.5% x 4)

Total amount = 869,400

Interest amount = 869400 - 630000

Interest amount = 239400