Question

Puleng receives R1 500,00 from the bank now, that charges 10,5% simple discount per annum. She has to pay back the bank an amount of R1 893,75 in a few months' time. The number of months after which Puleng pays back the loan, rounded to one decimal place, is
A. 2.5
B. 23.8
C. 2.0
D 30.0

Answer 1

Answer: got 2.23
Step-by-step explanation: Not sure about the answer

Answer 2

Given,

Initial amount = Rs. 1500

The rate of simple interest = 10.5%

Final amount = Rs. 1893.75

To Find,

The number of months after which Puleng pays back the loan =?

Solution,

According to the formula of simple interest,

A = P*R*T

Final amount = Principle + Interest = P + A

1893.75 = 1500 + P*R*T

(1500)*(10.5%)*T = 1893.75 - 1500

(1500)*(0.105)*T = 393.75

T = 393.75 / (157.5)

T = 393.75 / (157.5)

T = 2.5  years

T = 2.5 * 12 = 30 months

Hence, the months after which Puleng pays back the loan, rounded to one decimal place, is 30 months. Option(d) is the correct answer.