Question

John borrowed $ from bank for 3 years at a rate of 10%

Answer 1

Given:

• P= $12500
• R= 10%
• T= 3 years

Note that:

• P= Principal amount
• R= Rate of interest
• T= Time period

To find:

• The simple interest
• The total amount paid

Solution:

$\large\boxed{Formula: I= \frac{PRT}{100}}$

First, we'll have to multiply, principal amount (12500), rate (10) and time period (3).

$12500×10×3$

$=375000$

Now, we'll have to divide the amount (375000) by 100.

$\frac{375000}{100}$

I=$3750

Now, we can find the total amount paid.

$\large\boxed{A=SI+P}$

Let's substitute according to the formula.

$A=3750+12500$

A=$16250

Therefore, simple interest is $3750 and $16250 was paid in total.