Question

At what rate per annum will N250 amount to N330 in 4 years.

Answer 1

`\boxed{ \bold{ \huge{ \boxed{ \sf{8 \: \% \: }}}}}`

Explanation:

Given,

Principal ( P ) = N 250

Time ( T ) = 4 years

Amount ( A ) =N 330

Rate ( R ) = ?

First, finding the Interest :

According to definition of Amount ,

Amount = Principal + Interest

plug the values

⇒
`\sf{330 = 250 + I}`

Move i to left hand side and change it's sign

⇒
`\sf{ - I = 250 - 330}`

Calculate

⇒
`\sf{ - I = - 80}`

Change the signs of the both equation

⇒
`\sf{I = 80 }`

Interest = 80

Finding the rate :

Simple Interest =
`\sf{ (PTR)/(100) }`

plug the values

⇒
`\sf{80 = (250 * 4 * R)/(100) }`

Multiply the numbers

⇒
`\sf{80 = \: (1000 \: R)/(100) }`

Apply cross product property

⇒
`\sf{1000R = 100 * 80}`

Multiply the numbers

⇒
`\sf{1000R = 8000}`

Divide both sides of the equation by 1000

⇒
`\sf{ (1000R)/(1000) = (8000)/(1000) }`

Calculate

⇒
`\sf{R = 8 \: \% \: }`

Thus, Rate = 8 %

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Let's learn about Principal , Interest , Time , Rate and Amount :

• Principal = The money which is borrowed or deposited is called principal.
• Interest = The additional amount of money which is paid by borrower to the lender is called interest.
• Time = The duration of time for which principal us deposited or borrowed is termed as time period.
• Rate = The condition under which the insterest is charged is called rate.
• Amount = The sum of principal and Interest is called an amount.

Hope I helped!

Best regards!!