Question

6. If Birr 2500 invested at 6% simple interest per annum,

for 3 year, what is the interest
250
540
450
2950​

Answer 1

The interest is 450 ⇒ C

Explanation:

The formula of the simple interest is I = Prt, where

• I is the interset

• P is the investment amount

• r is the rate in decimal

• t is the time in years

∵ Birr invested 2500 at 6% simple interest per annum for 3 years

∴ P = 2500

∵ r = 6%

→ Divide it by 100 to change it to decimal

∵ 6% = 6 ÷ 100 = 0.06

∴ r = 0.06

∴ t = 3

→ Substitute them in the formula above

∵ I = 2500 × 0.06 × 3

∴ I = 450

∴ The interest is 450