Question

I borrowed 16000 from a finance company to buy a washing machine. The rate of interest for first year is 5% and for the second year is 10%. How much will it cost me if I pay the amount after two years to clear the loan?​​

Answer 1

Step-by-step explanation:

Rate on the first year = 5%

Rate of the second year = 10%

Total rate = 10% +5% = 15%

Simple interest =

\frac{p \times r \times t}{100}100p×r×t

\frac{16000 \times 15 \times 2}{100}10016000×15×2

SI = Rs. 4800

Amount = Principal amount + Simple interest.

Amount = 16000 + 4800

Amount = Rs. 20800.