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WAEC Agricultural Science 2015 Question 43

Question 43

Agricultural Finance

A farmer obtained a loan of N250,000 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?

  1. A.N20,000.
  2. B.N 40,000.
  3. C.N250,000.
  4. D.N400,000.
Show the answer and explanation

Answer: B (N 40,000.)

Explanation

Interest = 250,000 × 8/100 × 2 = N40,000.