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WAEC Agricultural Science 2011 Question 59

Question 59

Agricultural Finance

A cowpea farmer obtained a loan of D50,000.00 from his co-operative society at an interest rate of 5%. Calculate the interest to be paid on the borrowed capital after one year.

  1. A.D2,500.00
  2. B.D5,000.00
  3. C.D7,500.00
  4. D.D10,000.00
Show the answer and explanation

Answer: A (D2,500.00)

Explanation

Interest = 5% of 50,000 = 0.05 × 50,000 = 2,500.