If the simple interest on N2000 after 9 months is N60, at what rate per annum is the interest charged?

Answer Details

Given: Simple Interest (SI) = N60, Principal (P) = N2000, Time (T) = 9 months. We can use the formula for simple interest to find the interest rate per annum. Simple Interest = (P * R * T) / 100 Where R is the interest rate per annum. Converting the time in months to years, we get: T = 9/12 = 0.75 years Substituting the values in the formula, we get: 60 = (2000 * R * 0.75) / 100 Simplifying the equation, we get: R = (60 * 100) / (2000 * 0.75) R = 4 Therefore, the interest rate per annum is 4%. Note that this is a simple interest calculation and not a compound interest calculation.