Math 2017 Question 29
Question 29
Mrs. Jones borrows $10 000 from a bank. She has to repay the loan in 7 years at a rate of 12% interest per annum.
(a) Calculate the simple interest Mrs. Jones must pay. (2 marks)
(b) What is the total amount of money Mrs Jones must repay? (1 mark)
Answer
(a) $8400
(b) $18400
Explanation
(a) Simple interest = Principal * Interest * Time (Years)
Simple Interest = 10000 × 12 ÷100 × 7 = 8400
(b) Total amount = Principal + Interest
Total Amount = 10000+8400 = 18400
