Question

John borrowed $ from bank for 3 years at a rate of 10%

a) Find the simple interest
b) Find the the total amount paid​

Answer 1

Given:

• P= $12500
• R= 10%
• T= 3 years

Note that:

• P= Principal amount
• R= Rate of interest
• T= Time period

To find:

• The simple interest
• The total amount paid

Solution:

`\large\boxed{Formula: I= (PRT)/(100)}`

First, we'll have to multiply, principal amount (12500), rate (10) and time period (3).

`12500×10×3`

`=375000`

Now, we'll have to divide the amount (375000) by 100.

`(375000)/(100)`

I=$3750

Now, we can find the total amount paid.

`\large\boxed{A=SI+P}`

Let's substitute according to the formula.

`A=3750+12500`

A=$16250

Therefore, simple interest is $3750 and $16250 was paid in total.