If the simple interest on a certain amount of money saved in a bank for 5 years at 2\(\frac{1}{2}\)% annum is N500.00, calculate the total amount due after 6 years at the same rate
A
N2,500.00
B
N2,600.00
C
N4,500.00
D
N4,600.00
Verified Correct Answer: D.
Step-by-Step Mathematical Solution
P = \(\frac{100l}{RT} = \frac{100 \times 500}{5 \times 2.5} = \frac{50,000}{12.5}\)
= 4,000
Annual interest is \(\frac{500}{5}\) = 100
for 6 year = 4,000 + 100 + 100 + 100 + 100 + 100 + 100
= N 4,600
Source: Myschool Past Questions Archive (Record #50135)