Question

A loan of $12,000 was borrowed from the bank at a 14% per annum calculate the intrest on the loan at the end of the first year​

Answer 1

Answer:

i hope this helps!

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Step-by-step explanation:

P = $ 12000

r = 14%

t = 1 (for first year)

I = (P X r X t)/100

∴ I = (12000 X 14 X 1)/100

   = 120 X 14

   = $ 1680   <---------- (Interest on loan at the end of first year)

∴ Total amount owing at the end of first year = (P + I)

                                                                          = (12000 + 1680)

                                                                          =  $ 13680

Repayment = $ 7800

Amount still outstanding (at the start of second year) = 13680 - 7800

                                                                                       =  $ 5880

Interest on the outstanding amount at the end of second year,

P (new) = $ 5880

r (same) = 14%

t = 1 (for the current second year)

∴ I = (P X r X t)/100

   = (5880 X 14 X 1)/100

   = 82320 / 100

   = $ 823.2   <-------------------------- (Interest on outstanding amount at the end of second year)

Answer 2

Answer:

$1680

Step-by-step explanation:

Principal loan amount x Interest rate x Time

= 12000 × 14% × 1

=12000 × 14/100 × 1

=168000/100 × 1

=1680