Question

K5000 was invested at the rate of 10%, what is simple interest for 1year 9months.

Answer 1

K875

Explanation:

Principal = 5000

Rate, r = 10% = 10/100 = 0.1

Time = 1 year 9 months

Converting 9 months to year = 9 /12 = 3/4

Hence, time = 1 + 3/4 = 1 3/4 years = 1.75 years

Recall :

Simple interest = principal * rate * time

Simple interest = 5000 * 0.1 * 1.75 = K875