Calculate the time taken for ₦3000 to earn ₦600 if invested at 8% simple interest
Answer Details
To calculate the time taken for ₦3000 to earn ₦600 if invested at 8% simple interest, we can use the formula:
time = (interest / principal) / rate
where:
interest = ₦600
principal = ₦3000
rate = 8%
So, substituting the values in the formula, we get:
time = (600 / 3000) / 0.08
time = (0.2) / 0.08
time = 2.5 years
So, it takes approximately 2.5 years for ₦3000 to earn ₦600 if invested at 8% simple interest.