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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?

Mathematics

ScanSolve AI Answer

Answer

C

Step-by-step solution

4 steps
  1. Calculate the selling price of the motorcycle.

    The motorcycle was bought for GH¢16,800.00 and sold at 85% of the original cost.

    Selling Price=0.85×GH¢16,800.00\text{Selling Price} = 0.85 \times \text{GH¢}16,800.00 Selling Price=GH¢14,280.00\text{Selling Price} = \text{GH¢}14,280.00
  2. 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.

    Amount Invested (Principal, P)=GH¢14,280.00−GH¢3,930.75\text{Amount Invested (Principal, P)} = \text{GH¢}14,280.00 - \text{GH¢}3,930.75 P=GH¢10,349.25\text{P} = \text{GH¢}10,349.25
  3. 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 I=P×R×TI = P \times R \times T.

    I=GH¢10,349.25×0.18×9I = \text{GH¢}10,349.25 \times 0.18 \times 9 I=GH¢10,349.25×1.62I = \text{GH¢}10,349.25 \times 1.62 I=GH¢16,765.785I = \text{GH¢}16,765.785
  4. 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.

    GH¢16,765.79\boxed{\text{GH¢}16,765.79}
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