This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.
ScanSolve AI Answer
Step 1: Identify the given values. The principal amount (P) is TZS 10,000,000. The annual simple interest rate (R) is 8%, which is 0.08 in decimal form. The time period (T) is 2 years. Step 2: Calculate the simple interest (I). The formula for simple interest is: I = P × R × T Substitute the given values: I = 10,000,000 × 0.08 × 2 I = 800,000 × 2 I = 1,600,000 The simple interest for 2 years is TZS 1,600,000. Step 3: Calculate the total amount payable (A). The total amount payable is the sum of the principal amount and the simple interest: A = P + I Substitute the values: A = 10,000,000 + 1,600,000 A = 11,600,000 The total amount payable after 2 years is TZS 11,600,000. The total amount payable is TZS 11,600,000. Last free one today — make it count tomorrow, or type /upgrade for unlimited.