We read your photo as:

A trader borrows 600,000 at a simple interest rate of 15% per annum for 5 years. Calculate the interest and total amount he will pay.

Mathematics

ScanSolve AI Answer

Answers

2 parts
a
450,000
b
1,050,000

Step-by-step solution

3 steps

  1. Identify the given values.

    The principal amount borrowed (PP) is 600,000.
    The annual interest rate (RR) is 15%, which is 0.15 in decimal form.
    The time period (TT) is 5 years.

  2. Calculate the interest for part a).

    The formula for simple interest (II) is:

    I=P×R×TI = P \times R \times T

    Substitute the values:

    I=600,000×0.15×5I = 600,000 \times 0.15 \times 5 I=90,000×5I = 90,000 \times 5 I=450,000I = 450,000

    The interest the trader must pay is 450,000.

  3. Calculate the total amount for part b).

    The total amount (AA) to be paid altogether is the principal plus the interest:

    A=P+IA = P + I

    Substitute the values:

    A=600,000+450,000A = 600,000 + 450,000 A=1,050,000A = 1,050,000

    The total amount the trader will pay altogether is 1,050,000.

    a) The interest he must pay after five years is:

    450,000\boxed{450,000}

    b) The total amount the trader will pay altogether is:

    1,050,000\boxed{1,050,000}
Was this helpful?

Try one yourself

A new problem that tests the same skill.

Still stuck on this one?

Ask a follow-up, and the answer starts from this question.

Got a different question?Ask your own question

More Mathematics Questions

QA trader borrows N600,000 from a moneylender at a rate of 15% per annum simple interest. Calculate…QA man borrowed a sum of money at a simple interest rate of 20% per annum. After 1 year, he paid a…QA businessman borrowed Sh. 120,000 from a bank the bank charged Simple interest at the rate of 16%…QA farmer borrowed ksh 15000 from a SACCO and repaid a total of Ksh 18,450 after 2 years. Calculate…QCalculate the simple interest earned on a principal of 5,000,000 at an annual interest rate of 20%…
Browse by topic:Pre-Algebra
See all Mathematics questions →
Got a syllabus? Photograph it and I'll tell you what's due and what's worth the most.
Handwritten step-by-step solution preview

Handwritten Step-by-Step Solution

Get this as a handwritten image on WhatsApp — like a tutor wrote it for you.

Try on WhatsApp