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Benjamin bought a motorcycle for GH₵16,800.00 and later sold it at 85% of the original cost. He spent GH₵3,930.75 from the money he received from the sale of the motorcycle and invested the remaining at 18% per annum simple interest. How much did he earn in 9 years?
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4 stepsCalculate the selling price of the motorcycle.
The motorcycle was bought for GH¢16,800.00 and sold at 85% of the original cost.
Calculate the amount of money invested.
Benjamin received GH¢14,280.00 from the sale and spent GH¢3,930.75. The remaining amount was invested.
Calculate the simple interest earned.
The principal (P) is GH¢10,349.25, the interest rate (R) is 18% per annum (0.18), and the time (T) is 9 years.
The formula for simple interest is .Round the interest to two decimal places and select the correct option.
Rounding GH¢16,765.785 to two decimal places gives GH¢16,765.79.
This matches option C.The amount Benjamin earned in 9 years is the simple interest.
The correct option is C.
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