Question

7. Tyson obtained a loan from the bank at 7.5% simple interest for 2. 5 years. If the simple interest was N$347.50, how much did he borrow? 8. Hilma invested N$20 000 on 01/01/2018 at 9.5 % interest p.a compounded semi-annually. How much will she receive by 01/01/2022?

Answer 1

7. Tyson borrow $1853.33 loan from the bank.

8. She will receive $28990.94 by 01/01/2022.

Step-by-step explanation:

Ans 7: We are given that Tyson obtained a loan from the bank at 7.5% simple interest for 2. 5 years.

If the simple interest was N$347.50.

Let the Principal sum of money be 'P'.

Rate of interest be 'R'.

Time period be 'T'

and the Simple interest be 'S.I.'

Now, the formula for calculating simple interest is given by;

                  S.I.  =  $\frac{\text{P}\times \text{R} \times \text{T}}{100}$

We are given in the question: S.I. = $347.50 , R = 7.5% and T = 2.5 years.

So,    $347.50  =  $\frac{\text{P}\times 7.5 \times 2.5}{100}$

            P  =  $\frac{347.50 \times 100}{7.5 \times 2.5}$

            P  =  $\frac{3475000}{1875}$  =  $1853.33

Hence, Tyson borrow $1853.33 loan from the bank.

Ans 8: We are given that Hilma invested $20 000 on 01/01/2018 at 9.5 % interest p.a compounded semi-annually.

Here also, let the Principal sum of money be 'P'.

Rate of interest be 'R'.

Time period be 'T'

and the Amount of money be 'A'

The formula for calculating Amount where interest is compounded semi-annually is given by;

                  Amount  =  $P \times (1 + \frac{R}{2} )^{T\times 2}$

Here 2 represents the number of periods of compounds in a year.

Also, P = $20,000 , R = 9.5% and T = 4 years

So,  Amount  =  $20,000 \times (1 + \frac{9.5}{100 \times 2} )^{4\times 2}$

                      =  $20,000 \times (1 + \frac{95}{2000} )^{8}$

                      =  $28990.94

Hence, she will receive $28990.94 by 01/01/2022.