Oke deposited N800.00 in the bank at the rate of 12\(\frac{1}{2}\)% simple interest. After some time the total amount was one and half times the principal. For how many years was the money left in the bank?
A
2\(\frac{2}{3}\)
B
4
C
5\(\frac{1}{3}\)
D
8
Verified Correct Answer: B.
Step-by-Step Mathematical Solution
P = N800 (Principal), r = 12\(\frac{1}{2}\)% or 0.125
After sometimes, A = 1.5 x 800 = N1,200
A = P(1 + Tr) = 1200
= 800(1 + 0.125T)
= 1200
= 800(1 + 0.125T)
1200 = 800(1 + 0.125T)
0.125T = 0.5
T = \(\frac{0.5}{0.125}\)
= 4
Source: Myschool Past Questions Archive (Record #31499)