Mrs Ricky borrowed $5,340 at a bank at 9.5% per annum simple interest for 5 years.
(A) the sum of money paid in interest to the bank.
(B) the total amount of money repaid to the bank.
(C) the value of each monthly installment.
Start with this formula:
Interest = Principle * Rate * Time
23000
I don't know how to do it
5,340×9.5×5÷100
5340×9.5×5÷100
Mr. Jackson borrowed $5340 from a bank at 9.5% per annum simple interest for 5 years. Determine: The total amount of money repaid to the bank
To find the answers to these questions, we need to understand how simple interest works.
First, let's calculate the interest paid to the bank:
(A) The formula for simple interest is: Interest = Principal * Rate * Time
In this case, the principal is $5,340, the rate is 9.5% (0.095 as a decimal), and the time is 5 years.
So, the interest paid to the bank is:
Interest = $5,340 * 0.095 * 5
(B) To find the total amount repaid, we add the principal and the interest paid.
Total amount repaid = Principal + Interest
(C) To find the value of each monthly installment, we divide the total amount repaid by the number of months in 5 years.
Now, let's calculate the answers step by step:
(A) Interest = $5,340 * 0.095 * 5
(B) Total amount repaid = $5,340 + (Interest calculated in step A)
(C) Value of each monthly installment = (Total amount repaid calculated in step B) / (number of months in 5 years)
Please provide the number of months in 5 years to proceed.