In how many years will GH₵ 312.50 invested at 4% per annum simple interest amount to GH₵ 500.00?
Show Solution
Amount = Principal + Interest
Interest = Amount - Principal
Amount = GH₵ 500.00
Principal = GH₵ 312.50
Interest = GH₵ 500.00 - GH₵ 312.50 = GH₵ 187.5
Simple Interest
Simple Interest =
Let T = number of years.
Rate = 4
= 187.5
Get rid of the fraction by multiplying both sides by the denominator, 100
100 x = 187.5 x 100
312.50 x T x 4 = 187.5 x 100
Divide both sides by 312.50 x 4
T = = 15 years
∴ Number of years = 15 years
