Femi collected a loan of 500,000 at an interest rate of 20% per annum. What amount will he pay back at the end of the year

1 answer

Femi will pay back the loan amount plus the interest accrued over the year.

Interest = Loan amount * Interest rate = 500,000 * 20% = 100,000

Amount to be paid back = Loan amount + Interest = 500,000 + 100,000 = 600,000

Therefore, Femi will pay back 600,000 at the end of the year.