Question

Robert gets a loan from his bank.

he agrees to borrow £6000 at a fixed annual simple interest rate of 7%
he also agrees to pay the loan back over a 10-year-period.
how much money in total will ha have paid back at the end of the 10 years?

Answer 1

£10200

Explanation:

Amount borrowed (P) = £6000

Rate of interest (R) = 7%

Time (T) = 10 years

First, let us calculate the simple interest (SI) for 10 years.

Formula for simple interest is given as:

`S.I.=(PRT)/(100)`

Plugging the values of P, R and T in the above formula, we find:

`S.I.=(6000(7)(10))/(100)`

S.I.= £4200

Total money paid back at the end of the 10 years

= £6000 + £4200

= £10200