A loan of $12000 was borrowed from a bank at 14% per annum calculate the interest on loan at the end of the yr &the total amont owing at end of yr
The amount borrowed from the bank is $12000. The rate of interest is 14% per annum.
We have to find the interest at the end of one year and the total amount owed.
The interest incurred on $12000 at an interest rate of 14% per annum in one year is: 12000*0.14*1 = 1680
The total amount owed is the sum of the amount borrowed and the interest. That is equal to 12000 + 1680 = 13680.
The interest for one year is $1680 and the amount owed after one year is $13680.