Gina has a personal loan of K12500 charged at an interest rate of 5% compounded annually. She is required to repay the loan after 5 years. How much interest will she pay in total after repaying the loan?

Answer 1

The total amount that Gina will repay after 5 years is the sum of the loan amount and the interest.

The loan amount is K12500.

The interest rate is 5% per year, so the interest after 5 years is 5/100 * K12500 = K<<5/100*12500=625>>625.

Therefore, Gina will pay a total of K625 in interest after repaying the loan.