Question

Sunil borrowed 30000 at 9% simple
interest per annum. He makes monthly
payments for 4 years. Find :
(i) the total interest to be paid,
(ii) the total amount to be paid back,
(iii) the monthly amount to be paid.
​

Answer 1

Answer:

Simple Interest

When a person lends money to a borrower, the borrower usually has to pay an extra amount of money to the lender. This extra money is what we call the interest. We can express this interest in terms of the amount that the borrower takes initially. If the interest on a sum borrowed for a certain period is reckoned uniformly, then it is called simple interest or the flat rate. Before starting the formula for the simple interest, let us first state some terms that we will use in the formula.

Principal: The money borrowed or lent out for a certain period is called the principal or the sum.

Interest: Interest is the extra money that the borrower pays for using the lender’s money.

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Answer 2

Explanation:

simple interest=(P×R×T)/100

=(30000×9×4)/100

=10800

1) The total interest to be paid =10800

2) The total amount to be paid back = 10800+30000

= 40800

3) The monthly amount to be paid =40800/48

= 850