Question

robert gets a loan from his bank.
he agrees to borrow £6000 at a fixed annual simple interest rate of 7%
he also agrees to pay the loan back over a 10-year-period.
how much money in total will ha have paid back at the end of the 10 years?

Answer 1

Answer:

£10200

Step-by-step explanation:

Amount borrowed (P) = £6000

Rate of interest (R) = 7%

Time (T) = 10 years

First, let us calculate the simple interest (SI) for 10 years.

Formula for simple interest is given as:

$S.I.=\frac{PRT}{100}$

Plugging the values of P, R and T in the above formula, we find:

$S.I.=\frac{6000(7)(10)}{100}$

S.I.= £4200

Total money paid back at the end of the 10 years

= £6000 + £4200

= £10200