Question

A man borrowed GHC 1200 at the bank for 4 months at the rate of 5%.Calculate a. his simple interest

Answer 1

there are 12 months in a year, so then 4 months is really 4/12 of a year.

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & 1200\\ r=rate\to 5\%\to (5)/(100)\dotfill &0.05\\ t=\to (4)/(12)years\dotfill &(1)/(3) \end{cases} \\\\\\ I = (1200)(0.05)((1)/(3))\implies I=20~GHC`