Mathematics 2010 JAMB Past Questions - Question 5: At what rate will the interest on N400 increase to N24 in 3 years reckoning in simple interest ?

Correct Answer

B

Explanation

using simple interest = PxTxR /100,where P denotes pricipal = #400,T denotes time = 3 years,R denotes interest rate = ?24 = 400x3xR /100To find the rate at which the interest on N400 will increase to N24 in 3 years, we can use the formula for simple interest:Simple Interest = Principal * Rate * TimeIn this case, the principal (P) is N400, the interest (I) is N24, and the time (T) is 3 years. We need to solve for the rate (R).Substituting the given values into the formula, we have:N24 = N400 * R * 3To solve for R, divide both sides of the equation by N400 * 3:R = N24 / (N400 * 3)R = 0.02 / 3R = 0.0067Therefore, the rate at which the interest on N400 will increase to N24 in 3 years, reckoning in simple interest, is approximately 0.0067 or 0.67%.24x100 = 400 x 3 x Rtheerefore R = 24 x 100 / 400 x 3 = 2%