Find the interest rate per annum if a term deposit of K10000, paying simple interest of 5.8% p.a., pays K290 in interest.
First, we need to calculate the total amount accumulated in the term deposit after one year.
Total amount = Principal + Interest
Total amount = K10000 + K290
Total amount = K10290
Now, we can use the formula for simple interest to find the interest rate:
Simple Interest = Principal x Rate x Time
K290 = K10000 x Rate x 1 year
Rate = K290 / K10000
Rate = 0.029
So, the interest rate per annum is 2.9%.
Pardon I mean find the term/time using the given informations above.
To find the time (term) it will take for the K10000 term deposit to accumulate K290 in interest at a simple interest rate of 5.8% per annum, we can use the formula for simple interest:
Simple Interest = Principal x Rate x Time
We know:
- Simple Interest (I) = K290
- Principal (P) = K10000
- Rate (R) = 5.8% or 0.058 (decimal equivalent)
Substitute the values into the formula:
K290 = K10000 x 0.058 x Time
Solve for Time:
Time = K290 / (K10000 x 0.058)
Time = 0.5 years
Therefore, it will take 0.5 years (or 6 months) for a K10000 term deposit at a simple interest rate of 5.8% per annum to accumulate K290 in interest.