At what rate will the interest on ₦400 increases to ₦24 in 3 years reckoning in simple interest?
Answer Details
The formula for simple interest is:
I = PRT
Where:
I = Interest
P = Principal
R = Rate
T = Time
We are given the following information:
P = ₦400
I = ₦24
T = 3 years
Substituting these values into the formula and solving for R:
24 = 400 * R * 3
R = 24 / (400 * 3) = 0.02 = 2%
Therefore, the answer is 2%. The rate at which the interest on ₦400 increases to ₦24 in 3 years reckoning in simple interest is 2%.