Mohamad borrows $25,000 for 5 years at a 6% interest. What is the cost

1.	Mohamad borrows $25,000 for 5 years at a 6% interest. What is the cost of the loan, or total interest?
Answer» $\huge\bf\underline\mathfrak\red{Solution :}$ Money borrowed by Mohammad = $25000 Duration of borrowing (in years) = 5 years Rate of interest (Per anum) = 6p.c.p.a. $\huge\bf\underline\mathfrak\red{Find :-}$ Interest & total AMMOUNT PAID by Mohammad in the END, where Principal amount (P) = $25000 No. of years (N) = 5 years, Rate of interest (R) = 6p.c.p.a. $\huge\bf\underline\mathfrak\red{Formulae } \\ \huge\bf\underline\mathfrak\red{of \: simple} \\ \huge\bf\underline\mathfrak\red{interest }$ $\huge \frac{PNR}{100}$ Since :- Principal amount (P) = $25000 No. of years (N) = 5 years Rate of interest (R) = 6p.c.p.a. Therefore, interest $= \frac{PNR}{100} \\ = \frac{25000 \times 5 \times 6}{100} \\ = 1250 \times 6 \\ = 7500$ Interest = $7500 $\huge\bf\underline\mathfrak\red{Formulae \: of} \\ \huge\bf\underline\mathfrak\red{total \: amount }$ $P + S.I.$ P = $25000 S.I. = $7500 Therefore, P + S.I. = $25000 + $7500 = $32500 $\huge\bf\underline\mathfrak\red{Final \: answer :-}$ Mohammad has to PAY a total amount of $32500 from the lender from whom he borrowed the money which includes $7500 of interest. $\huge\bf\underline\mathfrak\red{I \: hope \: it \: helps } \\ \huge\bf\underline\mathfrak\red{you}$ $\huge\bf\underline\mathfrak\red{Thank \: You}$

Mohamad borrows $25,000 for 5 years at a 6% interest. What is the cost of the loan, or total interest?

Answer»

$\huge\bf\underline\mathfrak\red{Solution :}$

Money borrowed by Mohammad = $25000

Duration of borrowing (in years) = 5 years

Rate of interest (Per anum) = 6p.c.p.a.

$\huge\bf\underline\mathfrak\red{Find :-}$

Interest & total AMMOUNT PAID by Mohammad in the END, where Principal amount (P) = $25000

No. of years (N) = 5 years, Rate of interest (R) = 6p.c.p.a.

$\huge\bf\underline\mathfrak\red{Formulae } \\ \huge\bf\underline\mathfrak\red{of \: simple} \\ \huge\bf\underline\mathfrak\red{interest }$

$\huge \frac{PNR}{100}$

Principal amount (P) = $25000

No. of years (N) = 5 years

Rate of interest (R) = 6p.c.p.a.

Therefore, interest

$= \frac{PNR}{100} \\ = \frac{25000 \times 5 \times 6}{100} \\ = 1250 \times 6 \\ = 7500$

Interest = $7500

$\huge\bf\underline\mathfrak\red{Formulae \: of} \\ \huge\bf\underline\mathfrak\red{total \: amount }$

$P + S.I.$

P = $25000

S.I. = $7500

Therefore, P + S.I. = $25000 + $7500

= $32500

$\huge\bf\underline\mathfrak\red{Final \: answer :-}$

Mohammad has to PAY a total amount of $32500 from the lender from whom he borrowed the money which includes $7500 of interest.

$\huge\bf\underline\mathfrak\red{I \: hope \: it \: helps } \\ \huge\bf\underline\mathfrak\red{you}$

$\huge\bf\underline\mathfrak\red{Thank \: You}$