Question

Simple interest

£16000 borrowed for 17 months at a rate of 10.5% p.a

Answer 1

£ 2380

Explanation:

Principal = £16000

Time = 17 months = 1 year 5 months

Rate = 10.5%

`Simple \: Interest = (Pricipal × Rate × Time)/(100)`

Substitute values into the given equation

`s.i = (16000 * 10.5 * (17)/(12) )/(100) \\`

Multiply

`16000 * 10.5 * (17)/(2) = 238000 \\ \\ = (238000)/(100)`

Simplify

`= 2380`