Kilome borrowed 60,000 shillings from a self-help group that charges an interest at a rate of 10% p.a. calculate the amount kilome will pay back at the end of one and a half year
Mathematics
ScanSolve AI Answer
Answer
Kilome will pay back 69,000 shillings.
Step-by-step solution
3 stepsSteps:
Identify the given values
- Principal (P) = 60,000 shillings
- Annual Interest Rate (R) = 10% = 0.10
- Time (T) = 1.5 years
Calculate the Simple Interest (SI)
The formula for simple interest is SI = P * R * T
SI = 60,000 shillings * 0.10 * 1.5 years
SI = 6,000 shillings/year * 1.5 years
SI = 9,000 shillingsCalculate the Total Amount (A) to be paid back
The total amount is the Principal plus the Simple Interest.
A = P + SI
A = 60,000 shillings + 9,000 shillings
A = 69,000 shillings
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