Answer to Question #99303 in Financial Math for Angad

Question

a has given loan to b of 52000 @15% rate of interest per annum for 3 years ,find the value of interest and the total amount b has to give back to a

Answer 1

Its a simple interest question,

Thus Interest to be paid after 3 years,

$I=PRT=5200\times 0.15\times 3=2340$

Total Amount to be paid=Principal amount+ Interest=5200+2340=7540 unit