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.