Question

A fixed deposit receipt initiallypurchased for #1,500,000 for 4years has a maturity value of #1,300,000. What is the simple interest rate per year?​

Answer 1

11 3/13% per annum

Explanation:

to find rate= 100×simple interest ÷ (principal ×time)

simple interest=total amount - principal

=1,500,000-1,300,000

=200,000

=200,000 ×100÷ 1,300,000×4

=3 11/13% per annum