Question

The simple interest on birr 400 invested for 4 month was birr 12. What is the annual/yearly rate of interest

Answer 1

9%

Explanation:

Given data

Principal= 400

time= 4 months

r= 12%

SI= 12

SImeple interest

12=PRT/100

susbstitute

12= (400*r*4/12)/100

12SI= 400*r*0.333/100

12=133.2r/100

cross multiply

1200= 133.2r

r= 1200/133.2

r= 9.009

Hence the rate is 9%