An amount of R21 000 is borrowed is borrowed for 3 years at 11% simple interest per year.Calculate how much must be paid back including interest at the end of 3 years

Question

An amount of R21 000 is borrowed is borrowed for 3 years at 11% simple interest per year.Calculate how much must be paid back including interest at the end of 3 years

Answer 1

To calculate the amount that must be paid back, we need to add the interest to the principal amount.

Interest = Principal * Rate * Time
= 21000 * 0.11 * 3
= 6930

Amount to be paid back = Principal + Interest
= 21000 + 6930
= 27930

Therefore, at the end of 3 years, an amount of R27,930 must be paid back including interest.