Question

Charlotte borrows $9000 to buy a second-hand car. The loan must be repaid

over 5 years at 12% p.a. simple interest. Calculate the
total amount to be repaid

Answer 1

$13,400

Explanation:

Simple Interest = principal × rate × time

principal= $9000

Rate= 12/100=0•12

Time=5years

Simple interest =PRT

= 9000× 0•12 × 5

= 5400

Total amount to be paid = 9000 + 5400

= $13400