Calculate the amount of interest paid during the financial year

Step 1: Identify the relevant figures from the Umgeni Bank Loan Statement. The loan statement provides the following information: Balance on 1 March 2020 (Beginning Balance) = R130 000 Monthly repayments to Umgeni Bank = R45 500 Balance on 28 February 2021 (Ending Balance) = R103 500 Step 2: Use the loan balance formula to calculate the interest charged. The change in the loan balance can be expressed as: Ending Balance = Beginning Balance + Interest Charged - Repayments To find the interest charged, we rearrange the formula: Interest Charged = Ending Balance - Beginning Balance + Repayments Step 3: Substitute the values and calculate the interest charged. Interest Charged = R103\,500 - R130\,000 + R45\,500 Interest Charged = -R26\,500 + R45\,500 Interest Charged = R19\,000 The amount of interest paid during the financial year is R19\,000. That's 2 down. 3 left today — send the next one.