Question

A loan of $12000 was borrowed from the bank at 14% per annum calculate the interest on the loan at the end of the first year ?​

Answer 1

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Answer 2

Loan borrowed = $12,000

Percentage of interest on the loan per annum = 14%

We know that :

$\color{hotpink}\tt \: Simple \: interest = \color{plum}\frac{principal \times rate \times time}{100}$

In this case :

• principal = $12000
• rate = 14%
• time = 1 year

Simple interest at the end of the first year :

$= \tt \frac{12000 \times 14 \times 1}{100}$

$= \tt \frac{168000}{100}$

$\color{plum}\tt = \ 1680$

Thus, interest = $1680

Therefore, total interest on the loan at the end of one year = $1680