Application of Simple Interest

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Application of Simple Interest

  • November 25, 2020
  • Posted by: Michael Amankwah
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Welcome to your Application of Simple Interest

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1. Abena was granted a loan of GH₵80,000.00 by a bank. The rate of interest was 42% per annum for 2 years.a. Calculate
i. The interest at the end of the year.
ii. The total amount Abena had to pay at the end of the year.

b. Abena was able to pay only GH₵70,000.00 at the end of the year,
i. Find how much Abena still owed the bank
ii. Express the amount Abena owed after paying the GH₵70,000.00 to the bank as a percentage of the loan she took from the bank.
2. A man borrowed GH₵2,000.00 from a bank at the rate of 15% per annum simple interest for 2 years.a. find
i. The interest for 2 years.
ii. How much he pay paid in all to the bank after 2 years.

b. He use the GH₵2,000.00 to purchase a fridge and sold it at a profit of 45%. Find the selling price of the fridge.

c. If he used the amount raised from the fridge to pay for the bank loan and interest, find how much money left.

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