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## Sonia took a loan of $10 000 from ABC bank tob pay for a renovation at home. The bank offered her a period of 30 months at a rate of 10.5%.

Question

Sonia took a loan of $10 000 from ABC bank tob pay for a renovation at home. The bank offered her a period of 30 months at a rate of 10.5%. to repay the loan:

a) Calculate the Simple Interest she would pay in 30 months.

b) Calculate the Total amount Sonia would have to repay the bank.

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Mathematics
5 months
2021-08-15T13:26:51+00:00
2021-08-15T13:26:51+00:00 1 Answers
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## Answers ( )

Answer:a. Simple interest, S.I = $2,625

b. Total amount = $12,625

Step-by-step explanation:Given the following data;Principal = $10,000

Interest rate = 10.5%

Time = 30 months to years = 2.5 years

a. To find the simple interest;

Mathematically, simple interest is calculated using this formula;

Where;

Substituting into the formula, we have;

Simple interest, S.I = $2,625b. To calculate the total amount Sonia would have to repay the bank;

Total amount = simple interest + principal

Total amount = 2625 + 10000

Total amount = $12,625