Answer:
The amount of interest, he payed is 30 Ghana Cedis
Step-by-step explanation:
The amount Kwame borrowed from the finance company, P = 300 Ghana Cedis
The amount he repaid in each installment, M = 55 Ghana Cedis
The number of installments with which he repaid the loan, n = 6 installments
The amount of interest, "i", he payed, is given by the following formula;
The amount of interest, he payed, i = M × n - P
Therefore, i = 55 × 6 - 300 = 30
The amount of interest, he payed = i = 30 Ghana Cedis.
The amount he paid for interest is: 30 cedis.
Using this formula
Interest amount=Amount paid to bank -Loan amount
Where:
Amount paid to bank=55 cedis× 6=330 cedis
Loan amount=300 cedis
Let plug in the formula
Interest amount=330 cedis-300 cedis
Interest amount=30 cedis
Inconclusion the amount he paid for interest is: 30 cedis.
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