Exercise 1.10 1. If Birr 1200 is invested at $$ 10 \% $$ simple interest per annum, then What is simple interest after 5 years? 2. What principal will bring Birr 637 interest at a rate of $$ 7 \% $$ in 2 years? 3. Find the simple interest rate for a loan where Birr 6000 is borrowed and amount owned after 5 months is Birr 7500 .

Question

UpStudy AI · Accepted Answer

Certainly! Let's tackle each of the three questions related to simple interest step by step.

---

### **1. Simple Interest on Birr 1,200 at 10% per Annum for 5 Years**

**Given:**
- **Principal (P)** = Birr 1,200
- **Rate of Interest (R)** = 10% per annum
- **Time (T)** = 5 years

**Formula for Simple Interest (SI):**
$$ \text{SI} = \frac{P \times R \times T}{100} $$

**Calculation:**
$$
\begin{align*}
\text{SI} &= \frac{1,200 \times 10 \times 5}{100} \
&= \frac{60,000}{100} \
&= 600
\end{align*}
$$

**Answer:**  
The simple interest after 5 years is **Birr 600**.

---

### **2. Finding the Principal that Yields Birr 637 Interest at 7% for 2 Years**

**Given:**
- **Interest (SI)** = Birr 637
- **Rate of Interest (R)** = 7% per annum
- **Time (T)** = 2 years

**We need to find the Principal (P).**

**Rearranged Formula for Principal:**
$$ P = \frac{\text{SI} \times 100}{R \times T} $$

**Calculation:**
$$
\begin{align*}
P &= \frac{637 \times 100}{7 \times 2} \
&= \frac{63,700}{14} \
&= 4,550
\end{align*}
$$

**Answer:**  
The principal required is **Birr 4,550**.

---

### **3. Finding the Simple Interest Rate for a Loan of Birr 6,000 with Amount Owed Birr 7,500 after 5 Months**

**Given:**
- **Principal (P)** = Birr 6,000
- **Amount (A)** = Birr 7,500
- **Time (T)** = 5 months

**First, find the Simple Interest (SI):**
$$ \text{SI} = A - P $$
$$
\text{SI} = 7,500 - 6,000 = 1,500
$$

**Now, find the Rate (R).**

**Formula for Rate:**
$$ R = \frac{\text{SI} \times 100}{P \times T} $$

**Note:** Time should be in years.  
5 months = $$ \frac{5}{12} $$ years.

**Calculation:**
$$
\begin{align*}
R &= \frac{1,500 \times 100}{6,000 \times \frac{5}{12}} \
&= \frac{150,000}{6,000 \times 0.4167} \
&= \frac{150,000}{2,500} \
&= 60
\end{align*}
$$

**Answer:**  
The simple interest rate is **60% per annum**.

---

**Summary of Answers:**
1. **Birr 600** simple interest after 5 years.
2. **Birr 4,550** principal needed.
3. **60%** simple interest rate.

If you have any further questions or need additional explanations, feel free to ask!
**Answers:** 1. **Birr 600** simple interest after 5 years. 2. **Birr 4,550** principal needed. 3. **60%** simple interest rate. If you have any more questions, feel free to ask!

Real Tutor Solution

Answer

Solution

Beyond the Answer

Related Questions

Latest Arithmetic Questions