Ms. Clementine decided to borrow R30,000 from the bank for 4 years at an interest rate of 18% per annum simple interest.

Calculate how much the interest on her loan will be after four years?

To calculate the interest on Ms. Clementine's loan after four years, we'll use the simple interest formula:
I = P × r × t
Where:

I is the interest.
P is the principal amount (the initial amount of money borrowed).
r is the annual interest rate (expressed as a decimal).
t is the time in years.

In this case:

P = 30 , 000 (the amount borrowed).
r = 100 18 ​ = 0.18 (the interest rate expressed as a decimal).
t = 4 years.

Substituting these values into the formula gives us:
I = 30 , 000 × 0.18 × 4
Now we calculate:
I = 30 , 000 × 0.18 × 4 = 21 , 600
Thus, the total interest that Ms. Clementine will pay after four years is R 21 , 600 .

Answered by MasonWilliamTurner | 2025-07-21

Ms. Clementine will pay a total of R21,600 in interest on her loan of R30,000 over four years at an 18% per annum simple interest rate. This is calculated using the simple interest formula. By plugging in the values, we find the total interest to be R21,600.
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Answered by MasonWilliamTurner | 2025-08-06