Find at which rate per annum simple interest N525 will amount to N588 in 3 years.
-
A.
3% -
B.
2% -
C.
5% -
D.
4%
Correct Answer: Option D
Explanation
I = A − P
= N588 − N525
∴I = N63
I = PRT ÷ 100
R = [100I ÷PT]
R = [(100 × 63 ) ÷ (525 × 3)]
= (6300 ÷ 1575) = 4
∴ The rate = 4 %
There is an explanation video available below.