Question

# Fred borrows £420 from a person at 2.8% per annum and promises to pay it back in 3 years. Determine the total amount to be paid back by him.

- 150
- 212
- 315.2
- 455.28

Hint:

### Total repayable amount is the sum of the simple interest and the amount that borrowed.

## The correct answer is: 455.28

### P = £420, R = 2.8% = 0.028, T = 3 years, I = ?

I = 420 × 0.028 × 3 = £35.28

Amount = 420 + 35.28 = £455.28

>>>Simple Interest =

>>> Simple Interest = 35.28.

>>>Therefore, the total amount that he should return = Simple Interest + Principal Amount.

= 420 + 35.28

= 455.28

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