Question

Leah borrows 10,000 over 5 years at a simple intrest rate of 15%. How much intrest rate will she pay over 5year and how much will she pay back over the years

Answer 1

She will pay 7500 as interest over 5 years .

She will pay 3500 over the year.

Explanation:

Leah borrows 10,000 over 5 years at a simple interest rate of 15%.

Now, Principal(P)= 10,000

Time(T)= 5 years

rate percent (R)= 15%

Let, Interest be I

We know that, I =
`(P.R.T)/(100)`

Or,I = (10000×15×5)÷100

∴ I = 7500

Amount = Principal + Interest

= 10000 + 7500

= 17500 for 5 years

Amount for one year = 17500÷5 = 3500