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BECE Mathematics 2020 Paper

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Question : 23

Total: 40

A man earned an interest of GH₵ 240.00 in 4 years at 20% per annum simple interest. Calculate the principal

GH₵ 300.00
GH₵ 450.00
GH₵ 480.00
GH₵ 1,200.00

Solution:

Concept:

Simple interest is calculated using the formula

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

, where

P

is the principal,

R

is the rate per annum, and

T

is the time in years.

Explanation:

Given: interest

I = 240

, time

T = 4

years, rate

R = 20\%

per annum.

Substitute into the formula:

240 = \frac{P \times 20 \times 4}{100}

Simplify

20 \times 4 = 80

, so:

240 = \frac{80P}{100}

Multiply both sides by

100

:

240 \times 100 = 80P

24000 = 80P

Divide both sides by

80

:

P = \frac{24000}{80} = 300

Thus, the principal is GH₵ 300.00.

Answer:

A. GH₵ 300.00

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