Find the bank interest to the nearest cent. Prinicipal: ₦2,500, Rate: 9%; Time: 180days, Interest: ? A. ₦104.32 B. ₦109.75 C. ₦112.50 D. ₦10.96?

All_for_one

2 years ago

Sure, I can help you with that.

Formula

Simple interest is calculated using the following formula:

I = PRT
where:

I is the interest
P is the principal (the amount of money borrowed or invested)
R is the interest rate (expressed as a decimal)
T is the time (in years)
Given information

P = ₦2,500
R = 9% (expressed as a decimal, this is 0.09)
T = 180 days (since there are 365 days in a year, 180 days is equal to 0.5 years)
Calculation

I = (₦2,500)(0.09)(0.5) = ₦112.50
Round to the nearest cent:

I = ₦112.50 = ₦112
Answer

The bank interest is ₦112.