The simple interest on ₦8550 for 3 years at x% per annum is ₦4890. Calculate the value of x to the nearest whole number.
Answer Details
To find the interest rate, we need to use the formula for simple interest:
Simple Interest = (Principal * Rate * Time) / 100
Where,
Principal = ₦8550
Time = 3 years
So, we have ₦4890 = (₦8550 * Rate * 3) / 100.
To solve for Rate, we can isolate the variable by multiplying both sides of the equation by 100 and dividing by (₦8550 * 3):
Rate = (₦4890 * 100) / (₦8550 * 3)
Approximating the above expression, we get Rate = 19%.
So, the interest rate is 19% to the nearest whole number.