Question

Frans paid R9600 as interest on a loan he took 5 years ago at 16% rate. What's was the amount he took as loan?

Answer 1

The amount he took as loan = R12,000

Explanation:

Simple Interest

Let loan amount be = P

R = 16%

T = 5years

I = 9600

Find P

`I = (PRT)/(100)\\\\9600 = (P * 16 * 5)/(100)\\\\P = (9600 * 100)/(16 * 5) = 12,000`

Answer 2

Explanation:

Interest (I)=R9600

Rate(R)=16%

Time (T)=5years

Principal (P)=?

P=100×I÷R×T

P=100×R9600÷16×5

P=R960000÷80

P=R12, 000