Calculate the simple interest on GH₵ 800.00 invested for 3 years at a rate of 5% per annum.

Answer and explanation

Correct answer: A. GH₵ 120.00

  1. Step 1: Simple Interest formula: I = (P R T) / 100. Step 2. Substitute: I = (800 5 3) / 100 = 8 15 = GH₵ 120.00. Answer: GH₵ 120.00. Why not the others:* GH₵ 40.00 is interest for 1 year; GH₵ 80.00 is interest for 2 years; GH₵ 240.00 doubles the rate.

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