What principal sum of money will yield a simple interest of GH₵ 90.00 in 2 years at 6% per annum?
Answer and explanation
Correct answer: B. GH₵ 750.00
- Step 1: Formula for Principal: P = (100 I) / (R T). Step 2. Substitute: P = (100 90) / (6 2) = 9,000 / 12 = GH₵ 750.00. Answer: GH₵ 750.00. Why not the others: GH₵ 600.00 gives interest of GH₵ 72.00; GH₵ 800.00 gives interest of GH₵ 96.00; GH₵ 900.00 gives GH₵ 108.00.
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