Mathematics 2019 JAMB Past Questions - Question 31: .At what rate would a sum of £100.00 deposited for 5 years raise an interest of €7.50?

Correct Answer

C

Explanation

To find the rate at which a sum of £100.00 deposited for 5 years would yield an interest of €7.50, we can use the formula for simple interest:\[ \text{Simple Interest} = \frac{P \times R \times T}{100} \]Where:- \( P \) is the principal amount (the initial sum of money)- \( R \) is the rate of interest per year- \( T \) is the time in yearsIn this case, we are given:- \( P = £100.00 \)- \( T = 5 \) years- \( \text{Simple Interest} = €7.50 \)We can rearrange the formula to solve for \( R \):\[ R = \frac{\text{Simple Interest} \times 100}{P \times T} \]Substituting the given values into the formula gives:\[ R = \frac{7.50 \times 100}{100 \times 5} = \frac{750}{500} = 1.5 \]So, the rate at which a sum of £100.00 deposited for 5 years would yield an interest of €7.50 is 1.5%.