Question

Find the simple interest on 5,000 at 8 p.c.p.a. for 219 days.

(A) 320 (B) 240
(C) 160 (D) 80
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Answer 1

B

Explanation:

Average Number of days in year = [(3×365)+ 366]÷4

= 365.25 days per year

If there are 365.25 days in a year,

1 day will be 1/365.25 of a year

Therefore, 219 days will be

219/365.25 of a year

Simple Interest = Principal × Interest Rate× Time

= (5000 × 8 × 219)÷(100×365.25)

= 240