Question

7. Tyson obtained a loan from the bank at 7.5% simple interest for 2. 5 years. If the simple interest was

N$347.50, how much did he borrow?



8. Hilma invested N$20 000 on 01/01/2018 at 9.5 % interest p.a compounded semi-annually.
How much will she receive by 01/01/2022?
​

Answer 1

7.He borrowed $1853.33

8.She received $28990.936

Explanation:

7.Let x be the amount borrowed by Tyson

Rate of interest = 7.5%

Time = 2.5 years

Simple Interest = 347.50

Formula :
`Si = (P * T * R)/(100)`

Where SI = simple interest

P = Principal

T = Time

R = Rate of interest

Substitute the values in the formula :

`347.50=(x * 2.5 * 7.5)/(100)\\(347.50 * 100)/(2.5 * 7.5)=x\\1853.33=x`

Hence he borrowed $1853.33

8) Principal = 20000

Rate of interest = 9.5%

No. of compounds per year = 2

Time = 4 years

Formula :
`A=P(1+(r)/(n))z^(nt)`

Where A= amount

r = Rate of interest

n = no. of compounds

t = time

Substitute the values in the formula :

So,
`A=20000(1+(9.5)/(200))^(2(4))`

A=28990.936

Hence she received $28990.936