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# At what rate would a sum of N100.00 deposited for 5 years raise an interest of N7.50?

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## At what rate would a sum of N100.00 deposited for 5 years raise an interest of N7.50?

**A.** 2 ½ %

**B.** 1 ½ %

**C.** 15%

**D.** 25%

**QUICK ANSWER…**

**B**

**DETAILS…**

**Where P = principal**

**R = rate**

**T = time**

**Data given:**

**Simple interest = N7.5**

**P = N100**

**R = ?**

**T = 5**

**Substituting accordingly, we have:**

**7.5 = (100 × R × 5)/100**

**Multiplying both sides with 100, we have:**

**750 = 500R**

**R = 75/50 = 75/50 = 3/2 = 1 ½ %**

**Now for the right answer to the above question:**

**Option A is incorrect.****Option B is correct.****C is incorrect.****D is not the correct answer.**

**KEY-POINTS…**

**You may please note these/this:**

**Simple interest = PRT/100****Time is usually expressed in years, if you encounter a question given in months, you must convert to years before applying this formula.****If you love our answers, you can login to comment and say hi to us at the comment section…**

**To raise new related question****s, c****lick the ASK A QUESTION BOTTON down this page…**

**/ culled from 2020 JAMB-UTME mathematics past question 02 /**