Kibet deposited Ksh.60,000 in a bank that paid simple interest at a rate of 12.5% p.a. How much was in his account after 21/4 years? __

To find the amount in Kibet's account after \( \frac{21}{4} \) years, we need to calculate the simple interest earned and then add it to the principal amount.<br /><br />The formula for simple interest is:<br />\[ \text{Simple Interest} = \frac{P \times R \times T}{100} \]<br /><br />Where:<br />- \( P \) is the principal amount (initial deposit)<br />- \( R \) is the annual interest rate<br />- \( T \) is the time in years<br /><br />Given:<br />- \( P = Ksh. 60,000 \)<br />- \( R = 12.5\% \)<br />- \( T = \frac{21}{4} \) years<br /><br />First, let's calculate the simple interest:<br />\[ \text{Simple Interest} = \frac{60,000 \times 12.5 \times \frac{21}{4}}{100} \]<br /><br />Simplify the expression inside the fraction:<br />\[ \text{Simple Interest} = \frac{60,000 \times 12.5 \times 5.25}{100} \]<br /><br />Calculate the numerator:<br />\[ 60,000 \times 12.5 \times 5.25 = 3,937,500 \]<br /><br />Now, divide by the denominator:<br />\[ \text{Simple Interest} = \frac{3,937,500}{100} = 39,375 \]<br /><br />Next, add the simple interest to the principal amount to find the total amount in the account:<br />\[ \text{Total Amount} = \text{Principal} + \text{Simple Interest} \]<br />\[ \text{Total Amount} = 60,000 + 39,375 = 99,375 \]<br /><br />Therefore, the amount in Kibet's account after \( \frac{21}{4} \) years is \( Ksh. 99,375 \).