At what rate will the interest on N400 increases to N24 in 3 years reckoning in simple interest?
A
3%
B
2%
C
5%
D
4%
Verified Correct Answer: B.
Step-by-Step Mathematical Solution
Using simple interest = \(\frac{P \times T \times R}{100}\),
where: P denoted principal = N400
T denotes time = 3 years
R denotes interest rate = ?
24 = \(\frac{400 \times 3 \times R}{100}\)
24 x 100 = 400 x 3 x R
R = \(\frac{24 \times 100}{400 \times3}\)
= 2%
Source: WAEC / JAMB / NECO Classroom Archive (Record #29553)