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 5,000,000. The annual interest rate (R) is 12%, which is 0.12 in decimal form. The time period (T) is 1 year. Step 2: Use the simple interest formula. The formula for simple interest is: I = P × R × T where I is the interest, P is the principal, R is the annual interest rate, and T is the time in years. Step 3: Substitute the values and calculate the interest. I = 5,000,000 × 0.12 × 1 I = 600,000 The interest payable after one year is TZS 600,000. The interest payable after one year is TZS 600,000. Send me the next one 📸