WAEC Agriculture 2011 Paper

Concept:Simple interest is found by multiplying the principal amount, the rate of interest, and the time period.Here, only simple interest for one year is required.Explanation:The principal, or borrowed capital, is $\text{D}50,000.00$.The interest rate is $5\%$, which equals $\frac{5}{100}$. The time is given as one year, so time $= 1$.Using the simple interest formula:$\text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time}$.Substitute the known values:$\text{Interest} = 50{,}000 \times \frac{5}{100} \times 1$.Simplify the calculation:$50{,}000 \times \frac{5}{100} = 500 \times 5 = 2{,}500$.Thus, the interest payable after one year is $\text{D}2{,}500.00$.Answer:A. $\text{D}2{,}500.00$