Question

Arthur borrows P40 000.00 at 6% simple interest for a period pf 1 year. At
end of one year, how much must he pay?
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If Arthur did not pay back the loan or the interest by the end of the first yearand he wanted to continue the loan for another year at the same rate, then hewould owe P40 000.00 plus the interest incurred during the first year of loan. Howmuch must he pay at the end of the second
year?____________________________________________​

Answer 1

Answer:

Firstly, multiply the principal P, interest in percentage R and tenure T in years. For yearly interest, divide the result of P*R*T by 100. To get the monthly interest, divide the Simple Interest by 12 for 1 year, 24 months for 2 years and so on.