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BECE Mathematics 2010 Paper

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Question : 15

Total: 40

A simple interest of GH₵ 37,500.00 is earned on an amount of GH₵ 500,000.00 for 3 years. Calculate the percentage rate.

20.0 %
10.0 %
5.0 %
2.5 %

Solution:

Concept:

Simple interest is calculated using the formula:

I = \frac{P \times T \times R}{100}

Where

I

is the interest,

P

is the principal,

T

is the time in years, and

R

is the rate percent per annum.

Explanation:

Given:

I = \text{GH₵ }37,500

,

P = \text{GH₵ }500,000

, and

T = 3

years.

Substitute the values into the formula:

37{,}500 = \frac{500{,}000 \times 3 \times R}{100}

Rearrange to find

R

:

R = \frac{37{,}500 \times 100}{500{,}000 \times 3}

Simplify the fraction:

R = \frac{37{,}500 \times 100}{1{,}500{,}000} = \frac{3{,}750{,}000}{1{,}500{,}000} = 2.5

Thus, the rate is

2.5\%

per annum.

Answer:

D.

2.5\%

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