b)Abbas plan to buy a sport bike with the money that he won. However, he estimates that he still need to borrow RM25,000.00 to pay for his dream bike. Abbas’s friend is willing to lend him the money, which Khairul can pay back after 5 years. But, his friend wants to charge an interest rate of 6%. How much Khairul has to pay back to his friend?
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Answer:
Amount has to pay back is 32,500
Explanation:
Principle Amount (P) = 25,000.00
Rate of interest (R) = 6%
Time (T) = 5 years
(i).Interest (I) = ?
(ii).Total Amount (A) = ?
_______________________________________
(i). Interest
I = (P×R×T)/100
=(25000×6×5)/100
=250×6×5
=7500
(ii). Amount
A = I+P
=25000 + 7500
=32,500
Hope it was helpful for you
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