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What time will it take to earn N8100 simple interest on N180,000 at 9% per annum?​

What time will it take to earn N8100 simple interest on N180,000 at 9% per annum?​-example-1
User Jay Wick
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1 Answer

8 votes

Answer:

Half a year (6 months)

Explanation:

Simple interest is based on the principal amount of a loan or deposit, whereas compound interest is based on the principal amount and the interest that accumulates on it in every period.

Simple Interest = P x r x n

where P = Principal amount, r = Annual interest rate, n = Term, in years​

9% = 9 ÷ 100 = 0.09 so r = 0.09

Therefore,

Simple Interest = P x r x n

8100 = 180000 x 0.09 x n

8100 = 16200n

n = 0.5

Therefore, he will earn N8100 in interest on an initial investment of N180,000 at 9% simple interest over half a year

User Jared Clemence
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