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The simple interest on birr 400 invested for 4 months was birr 12, what is the annual (yearly) rate of interest?

User Nathan Day
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1 Answer

2 votes

Answer:

9%

Explanation:

Given :

Principal, P = 400

Time, t = 4 months = 4/12 = 0.33333

Simple interest = 12

Simple interest = (principal * rate * time)

Rate = r

12 = (400 * r * 0.33333)

12 = 133.3333r

r = 12 / 133.3333

r = 0.090000

r = 0.09

rate = 0.09 * 100% = 9%

User Azizur Rehman
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