Question 7
Commercial ArithmeticFind the time for which $1,250.00 will amount to $2,031.25 at 12.5% per annum simple interest.
- A.2 years
- B.3 years
- C.4 years
- D.5 years
Show the answer and explanation
Answer: D (5 years)
Explanation
Interest = 2031.25 − 1250 = 781.25. T = (100 × 781.25) ÷ (1250 × 12.5) = 5 years.