Question

N$350 deposited for 3 years at simple interest earns N$159, 60 interest. At what rate was the interest paid?
(A) 15.2%
(B) 0.152%
(C) 16%
(D) 1.52%
(E) 152%

Answer 1

Answer:

Quite simply, you multiply 2,500 by 4% (= 0.04) and then by 3, which gives you Rs 300. You are able to do this because you have specified simple interest. If interest were compounding, the math would get a little harder.