Kwame borrowed 300 Ghana cedis from a finance company. He repaid the loan in six equal installment 55 Ghana cedis. How much interest did he pay.

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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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.