Answer:
2.5%
Explanation:
A simple interest of Ghc 37,500.00 is earned on an amount of Ghc 500,000.00 for three years. Find the rate of interest per annum?
The formula for Rate of Interest in a simple interest is given as:
r = (1/t)(A/P - 1)
Where
t = time in years = 3 years
P = Principal = Initial amount invested = Ghc 500,000.00
A = Amount after t years =
Principal + Simple Interest
= Ghc 500,000.00 + Ghc 37,500.00
= Ghc 537,500.00
Hence:
The rate of interest = (1/3) × (Ghc 537,500.00/Ghc 500,000.00 - 1)
= r = 0.025
Converting r decimal to R a percentage
R = 0.025 × 100 = 2.5%/year
Therefore, the rate of interest per annum is 2.5%