216k views
4 votes
In how many years will 5000 yield a simple interest of GHC 1000.00 at the rate of 5% per annum?

1 Answer

2 votes

Final answer:

It will take 4 years for $5,000 to yield a simple interest of GHC 1000.00 at a rate of 5% per annum.

Step-by-step explanation:

To calculate the time it will take for $5,000 to yield a simple interest of GHC 1000.00 at a rate of 5% per annum, we can use the formula:

Simple Interest = Principal x Rate x Time

Plugging in the given values:

1000 = 5000 x 0.05 x Time

Simplifying the equation:

Time = 1000 / (5000 x 0.05)

Time = 1000 / 250

Time = 4

Therefore, it will take 4 years for $5,000 to yield a simple interest of GHC 1000.00 at a rate of 5% per annum.

User GoonerForLife
by
9.4k points