What sum of money will earn 72 naira as simple interest at a rate of 5 % per annum in 3 years
To find the sum of money that will earn 72 naira as simple interest at a rate of 5% per annum in 3 years, we can use the formula for simple interest:
Simple Interest = (Principal * Rate * Time) / 100
We are given the simple interest (72 naira), the rate (5% per annum), and the time (3 years). Let's denote the principal as P.
Substituting the given values into the formula, we have:
72 = (P * 5 * 3) / 100
Multiplying both sides of the equation by 100 to eliminate the denominator, we get:
7200 = 15P
Dividing both sides of the equation by 15, we find:
P = 480
Therefore, the sum of money that will earn 72 naira as simple interest at a rate of 5% per annum in 3 years is 480 naira.