NB:

I = P*R*T100         P = I*100R*T       R = I*100P*T       A = P + I

Where

I = Interest, P = Principal, R = Rate, T = Time, A = Amount

Ex: a) the simple interest on 480frs after 5 years is 156frs, calculate the rate per annum

b) Find the time in which 360frs will amount to 420frs at 4% per annum

c) Find the principal which will yield 325frs interest after 4 years at 8% per annum

Solution:

          a) P = 480frs, I = 156frs, T = 5 years, R = I*100P*T = 65%

The rate is 65% per annum

b) P = 360frs, A = 420frs, I = 420-360 = 60frs, R = 4%, T = I*100P*R = 60*100360*4 = 25/6 = 416 years

c) P = 325*258*4 = 1016FRS