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 steps

Steps:

  1. Identify the given values

    • Principal (P) = 60,000 shillings
    • Annual Interest Rate (R) = 10% = 0.10
    • Time (T) = 1.5 years
  2. 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 shillings

  3. Calculate 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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