- 1 Marks
Question
Ronny wants to borrow N160,000 from his friend. He is willing to pay back N174,400 in 3 months. What simple interest rate will be applicable?
A. 34%
B. 35.5%
C. 36%
D. 36.5%
E. 37%
Answer
C. 36%
Explanation:
To calculate the simple interest rate, we use the formula:
Interest=Principal×Rate×Time
- Tags: Interest Rate, Loan Repayment, Simple Interest
- Level: Level 1
- Topic: Basics of Business Finance and Financial Markets
- Series: NOV 2020
- Uploader: Dotse