A cowpea farmer obtained a loan of D50,000.oo from his co-operative society at an interest rate of 5%. Calculate the interest to be paid on the borrowed cap...

Answer Details

To calculate the interest to be paid on the borrowed capital, we can use the simple interest formula: Interest = Principal * Rate * Time Where: - Principal = D50,000.00 (the borrowed capital) - Rate = 5% (the interest rate) - Time = 1 year Plugging in the values: Interest = 50,000.00 * 0.05 * 1 Interest = 2,500.00 Therefore, the interest to be paid on the borrowed capital after one year is D2,500.00. The correct option is (a) D2,500.00.