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Calculate the simple interest on Ghc 130.00 for 5/2 years at 12% per annum.

a) Ghc 39.00
b) Ghc 39.20
c) Ghc 37.50
d) Ghc 38.75

1 Answer

5 votes

Final answer:

The calculation of simple interest on GHC 130.00 for 5/2 years at a 12% rate results in GHC 39.00, corresponding to option (a).

Step-by-step explanation:

The question is asking us to calculate the simple interest on an amount of GHC 130.00 for a period of 5/2 years at an annual interest rate of 12%. Simple interest can be calculated using the formula:

Simple Interest (SI) = Principal (P) × Rate (R) × Time (T)

where P is the principal amount, R is the rate of interest per annum, and T is the time period in years.

To find the simple interest for this question, we would plug the values into the formula:

SI = 130 × 0.12 × (5/2)

SI = 130 × 0.12 × 2.5

SI = GHC 39.00

Therefore, the simple interest for the given conditions would be GHC 39.00, which corresponds to option (a).

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