Answer to Question #150414 in Financial Math for EL-FRIDA

Question

Find the simple interest on a loan of GHC 2,500 that is borrowed at 9% for 7 months

Answer 1

The simple interest (amount of interest) is

$$I=Prt,$$

where P - the borrowed mount of money,

r - rate,

t - time.\

$$I=2500\cdot0.09\cdot7=1575\text{ GHC}.$$