Question

Kwame borrowed 300 Ghana cedis from a finance company. He repaid the loan in six equal installment 55 Ghana cedis. How much interest did he pay.
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Answer 1

Answer:

The amount of interest, he payed is 30 Ghana Cedis

Step-by-step explanation:

The amount Kwame borrowed from the finance company, P = 300 Ghana Cedis

The amount he repaid in each installment, M = 55 Ghana Cedis

The number of installments with which he repaid the loan, n = 6 installments

The amount of interest, "i", he payed, is given by the following formula;

The amount of interest, he payed, i = M × n - P

Therefore, i = 55 × 6 - 300 = 30

The amount of interest, he payed = i = 30 Ghana Cedis.