Question

1. Harry invested Nu 3200 in an

account for four years. The value of
the investment at the end of four years
was Nu 4000. Determine the rate of
simple interest that was earned.​

Answer 1

The formula for simple interest is I=PRT, where I = interest earned, P = principal amount invested/borrowed, R = rate as a decimal, and T = time in years.

In order to find the rate, we need to know the interest earned. So we’ll subtract the information given to find what the interest earned was: 4000-3200 = 800

I = PRT
800= (3200)(r)(4)
800= 12,800r
r = 0.0625
Multiply by 100 to get percentage
r = 6.25%

Please let me know if you have questions about this answer.