This mathematics problem involves applying core mathematical principles and formulas. Below you will find a complete step-by-step solution with detailed explanations for each step, helping you understand not just the answer but the method behind it.
ScanSolve AI Answer
Step 1: Identify the given values. The principal amount is P = N20,000. The simple interest earned is I = N2,500. The time period is T = 3 years. 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 (as a decimal), and T is the time in years. Step 3: Rearrange the formula to solve for the interest rate R. R = (I)/(P × T) Step 4: Substitute the given values into the formula. R = N2,500N20,000 × 3 Step 5: Calculate the interest rate. R = (2,500)/(60,000) R = (25)/(600) R = (1)/(24) R ≈ 0.041666... Step 6: Convert the decimal rate to a percentage. To express the rate as a percentage, multiply by 100. R = 0.041666... × 100\% R ≈ 4.17\% The interest rate is approximately 4.17%. 4.17\% Send me the next one 📸