SOLUTION: In how many years will ghana cedis 600.00 yield an interest of ghana cedis 150.00 at a rate of 5% per annum

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: In how many years will ghana cedis 600.00 yield an interest of ghana cedis 150.00 at a rate of 5% per annum       Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


   



Question 1194989: In how many years will ghana cedis 600.00 yield an interest of ghana cedis 150.00 at a rate of 5% per annum
Answer by ikleyn(52788) About Me  (Show Source):
You can put this solution on YOUR website!
.

Use the formula for simple interest  I = P*r*t.


Adopt it to your case

    150 = 600*0.05*t,


where "t" is the time in years.


From this equation, obtain the answer  t = 150%2F%28600%2A0.05%29 = 5 years.


Solved.


There is another way to solve it without using equations.


    At 5% annual interest, the principal of 600 units produces 600*0.05 = 6*5 = 30 units of interest each year.


    Hence, the interest of 150 units will be produced in  150/30 = 5 years.

    giving you the same answer.

Solved twice, by two different methods, for your better understanding.

----------------

To see many other similar  (and different)  solved problems on simple interest accounts,  look into the lesson
    - Simple interest percentage problems
in this site.


Learn the subject from there.