Vina took out a personal loan of K5500 on 11 November 2014 and repaid the loan and the interest owing on 16 May 2015. If the interest charged for the loan was 8.25% p.a. calculate the total amount that was repaid. (Interest is not charged for 16 May.)

Question

Initial date is 315 days.
Final date is 136 days.

Answer 1

First, we need to calculate the number of days Vina had the loan for:

Final date - Initial date = 136 days - 315 days = 219 days

Next, we calculate the total interest charged on the loan:

Interest = Principal x Rate x Time
Interest = 5500 x 0.0825 x (219/365) = 260.27

Finally, we calculate the total amount repaid by adding the principal and the interest:

Total amount = Principal + Interest
Total amount = 5500 + 260.27 = K5760.27

Therefore, the total amount that was repaid by Vina was K5760.27.