What is the amount to be paid on 20,000 naira for 4years at 3% simple interest.

Answer 1

To calculate the amount to be paid on 20,000 naira for 4 years at 3% simple interest, we use the formula:

Simple Interest = Principal x Rate x Time

Where:
Principal = 20,000 naira
Rate = 3% or 0.03
Time = 4 years

Simple Interest = 20,000 x 0.03 x 4
Simple Interest = 20,000 x 0.12
Simple Interest = 2,400 naira

Therefore, the amount to be paid on 20,000 naira for 4 years at 3% simple interest is 22,400 naira.