Question

if the simple interest on ghc 500000 for 3years is ghc 37,500 .find the rate percent per annum​

Answer 1

Organize the given information in a list.

I = ?, P = $500, r = 6%, t = 3 years

We will use the simple interest formula to find the interest.

Write the formula. I = Prt

Substitute the given information. Remember to write the percent in decimal form. I = (500)(0.06)(3)

Simplify. I = 90

Check your answer. Is $90 a reasonable interest earned on $500 in 3 years? In 3 years the money earned 18%. If we rounded to 20%, the interest would have been 500(0.20) or $100. Yes, $90 is reasonable.

Write a complete sentence that answers the question. The simple interest is $90.