The amount Frans took as loan = R12000
"It is the interest that is only calculated on the initial amount of the loan."
[tex]SI=\frac{P\times R\times T}{100}[/tex]
where, P: principal amount
T : period
R: rate of interest
For given question,
SI = 9600
T = 5 years
R = 16%
We need to find the principal amount.
Using simple interest formula,
[tex]\Rightarrow SI=\frac{P\times R\times T}{100}\\\\\Rightarrow P=\frac{SI\times 100}{R\times T}\\\\\Rightarrow P=\frac{9600\times 100}{5\times 16}\\\\\Rightarrow P=12000[/tex]
Therefore, the amount Frans took as loan = R12000
Learn more about the simple interest here:
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