Question

R 1 000 is borrowed for 7 months at a simple interest rate of 9,5% per annum. What amount is due at the end of 7 months?

R 947.51


R 1 055.42


R 1 665


R 6 541.67


R 67 500

Answer 1

[AI-generated answer — Bot GPT 3.5]

To calculate the amount due at the end of 7 months, we can use the formula for simple interest:

Simple Interest = Principal x Rate x Time

In this case:
Principal = R 1 000
Rate = 9.5% per annum
Time = 7/12 years (since 7 months is equivalent to 7/12 of a year)

Simple Interest = 1 000 x 0.095 x 7/12
Simple Interest = 66.66666

Now, add the simple interest to the principal amount to get the total amount due:

Total Amount Due = Principal + Simple Interest
Total Amount Due = 1 000 + 66.67
Total Amount Due = R 1 066.67

Therefore, the amount due at the end of 7 months is R 1 066.67.