At what rate per cent per annum will N520.00 yield a simple interest of N39.00 in three years?
Answer Details
We can use the formula for simple interest:
Simple Interest = (P * r * t) / 100
where P is the principal, r is the rate of interest per annum, and t is the time period in years.
We are given that P = N520.00 and the simple interest, SI = N39.00. We are also given that the time period is 3 years. Substituting these values into the formula, we get:
N39.00 = (N520.00 * r * 3) / 100
Simplifying this equation, we get:
r = (N39.00 * 100) / (N520.00 * 3) = 2.5%
Therefore, the rate of interest per annum is 2.5%.
So, the correct option is:
- 2\(\frac{1}{2}\)%