Test Index

WAEC Agriculture 2015 Paper

© africaexams.com

Question : 48

Total: 57

A farmer obtained a of #250,000 at a simple interest rate of 8% per annum to be paid in two years what would be the interest the farmer will pay on the loan?

# 20,000
#40,000
#250,000
#400,000

Solution:

Concept:

Simple interest is found using the formula

I = \frac{P \times R \times T}{100}

.

Explanation:

Principal amount

P = \#250,000

.

Rate of interest

R = 8\%

per annum.

Time period

T = 2

years.

Substitute the values into the formula:

I = \frac{250,000 \times 8 \times 2}{100}

.

Simplify:

I = \frac{250,000 \times 16}{100}

.

Therefore,

I = 40,000

.

Answer:

The interest the farmer will pay is

\#40,000

(Option B).

© africaexams.com

Go to Question:

Prev Question

Next Question