Certainly! Let's break this down step-by-step.
1. Interest Amount Calculation:
- Loan Amount: 5,245,685.78 birr
- Annual Interest Rate: 9.75% converted to a decimal is 0.0975
- Loan Start Date: February 27, 2024
- Loan End Date: February 4, 2024
- Duration of the Loan: 23 days (from February 4 to February 27 inclusive)
To find the interest amount, we use the formula:
[tex]\[
\text{Interest Amount} = \text{Loan Amount} \times \left(\frac{\text{Annual Interest Rate}}{365}\right) \times \text{Number of Days}
\][/tex]
Given these inputs and calculations, the interest amount is 32,228.63 birr.
2. Amount to be Paid Back (MD):
- MD is the total amount to be paid back including the principal and interest.
- MD = Principal Amount + Interest Amount
- Using the given values, MD is:
[tex]\[
MD = 5,245,685.78 + 32,228.63 = 5,277,914.41 \, \text{birr}
\][/tex]
So, summarizing:
1. The interest amount is 32,228.63 birr.
2. The total amount to be paid back (MD) is 5,277,914.41 birr.
