Question

Tau has taken a personal loan of K5200 for 2 years at a simple interest rate of 12.5% per annum. How much interest will he pay?

Answer 1

To calculate the interest Tau will pay, we can use the simple interest formula:

Interest = Principal * Rate * Time

Here, the principal (P) is K5200, the rate (R) is 12.5%, and the time (T) is 2 years.

So, the interest Tau will pay is:
Interest = 5200 * 12.5/100 * 2
Interest = 1300 * 2
Interest = K2600

Therefore, Tau will pay a total interest of K2600.