Mathematics 2018 JAMB Past Questions - Question 24: If the simple interest on a sum of money invested at 3% per annum for 2sup1/2 years is #123,find the principle.

Correct Answer

C

Explanation

P = 1001 /RTP = 100 X 123 / 3X2.5P = # 1,640To find the principal (the initial sum of money), we can use the formula for simple interest:Simple Interest (SI) = (Principal × Rate × Time) / 100Given that the simple interest is #123, the rate is 3% per annum, and the time is 2.5 years, we can use these values to find the principal.Plugging these values into the formula, we get:123 = (Principal × 3 × 2.5) / 100Now, we can solve for the principal:123 = (7.5 × Principal) / 100123 × 100 = 7.5 × Principal12300 = 7.5 × PrincipalPrincipal = 12300 / 7.5Principal = 1640Therefore, the principal is #1640.