Find at which rate per annum simple interest N525 will amount to N588 in 3 years.
A
3%
B
2%
C
5%
D
4%
Verified Correct Answer: D.
Step-by-Step Mathematical Solution
I = A − P
= N588 − N525
∴I = N63
I = PRT ÷ 100
R = [100I ÷PT]
R = [(100 × 63 ) ÷ (525 × 3)]
= (6300 ÷ 1575) = 4
∴ The rate = 4 %
Source: Myschool Past Questions Archive (Record #40649)