Answer: The new value of the sum of N1,500 investment at a simple rate of 15% per annum for 2 years is N1950
Step-by-step explanation:
Simple interest is calculated by multiplying the principal amount, interest rate, and time.
The formula for simple interest is:
Simple Interest = (principal x rate x time) / 100
In this case, the principal amount is N1,500, the interest rate is 15% per annum and the time is 2 years.
So the simple interest earned on the investment is:
Simple Interest = (1500 x 15 x 2) / 100
Simple Interest = N450
To find the new value of the investment, we add the simple interest earned to the principal amount.
New value = Principal + Simple Interest
New Value = 1500 + 450
New Value = N1950
Explanation: Simple interest is calculated by multiplying the principal amount, interest rate, and time. By using this formula, the interest earned on the investment was N450. And by adding the interest to the principal amount, we can find the new value of the investment which is N1950.