Question

Young invested GH150,000 and 2.5% per annum simple interest. how long will it take this amount to. yield an interest of GH11,250,00​

Answer 1

Answer: 3 years

Explanation:

Interest is calculated as:

= (P × R × T) / 100

where

P = principal = 150,000

R = rate = 2.5%.

I = interest = 11250

T = time = unknown.

I = (P × R × T) / 100

11250 = (150000 × 2.5 × T)/100

Cross multiply

1125000 = 375000T

T = 1125000/375000

T = 3

The time taken will be 3 years