Question

3. A student borrows £3500 to be repaid after 3 years. The lender quoted a flat rate of interest

of 6.25%. Calculate the total interest that should be paid.

Answer 1

Answer: The total interest is 656.25.

Explanation:

T = 3yrs

P = 3500

R = 6.25%

I = PTR/100

= 3500*3*6.25/100

= 65625/100

= 656.25