If N2,500.00 amounted to N3,50.00 in 4 years at simple interest, find the rate at which the interest was charged
A
5%
B
7\(\frac{1}{2}\)%
C
8%
D
10%
Verified Correct Answer: D.
Step-by-Step Mathematical Solution
A = 3,500, P = N2,500
A = P + I
But I = N3,500 - N2,500
I = N1,000
I = \(\frac{PRT}{100}\)
N1,000 = \(\frac{2.500 \times R \times 4}{100}\)
1000 = 100R
R = \(\frac{1000}{100}\)
= 10%
Source: Myschool Past Questions Archive (Record #36744)