Question

A company borrows 60,000 for 10 years at a simple interest rate of 8.5​%. Find the interest paid on the loan and the total amount paid.

Answer 1

Answer: 51,000 ; 111,000

Explanation:

The formula to calculate the simple interest is: PRT/100

where,

P = principal = 60,000

R = rate = 8.5%

T = time = 10 years

Simple interest =(60000 × 8.5 × 10)/100

= 5100000/100

= 51,000

Total Amount Paid= Principal + Interest

= 60,000 + 51,000

= 111,000