Find the simple interest on the following amounts:
a K4000 invested at 6% p.a. for 4 years
b K23 000 invested at 6.5% p.a. for 8 years
K580 borrowed at 5% p.a. for 9 months
inte
с
500​

Answer:

a. Simple interest = K960

b. Simple interest = K11,960

c. Simple interest = K261

Step-by-step explanation:

Given the following data;

a. Principal = K4000

Interest rate = 6%

Time = 4 years

To find the simple interest;

Mathematically, simple interest is calculated using this formula;

[tex] S.I = \frac {PRT}{100} [/tex]

Where;

S.I is simple interest.

P is the principal.

R is the interest rate.

T is the time.

Substituting into the equation, we have;

[tex] S.I = \frac {4000*6*4}{100} [/tex]

[tex] S.I = \frac {4000*6*4}{100} [/tex]

[tex] S.I = \frac {96000}{100} [/tex]

S.I = K960

b. Principal = K23 000

Interest rate = 6.5%

Time = 8 years

To find the simple interest;

[tex] S.I = \frac {PRT}{100} [/tex]

Substituting into the formula, we have;

[tex] S.I = \frac {23000*6.5*8}{100} [/tex]

[tex] S.I = \frac {1196000}{100} [/tex]

S.I = K11,960

c. Principal = K580

Interest rate = 5%

Time = 9 months

To find the simple interest;

[tex] S.I = \frac {580*5*9}{100} [/tex]

[tex] S.I = \frac {26100}{100} [/tex]

S.I = K261

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