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JAMB Mathematics 1987 Question 9

Question 9

Commercial Arithmetic

A man invests a sum of money at 4% per annum simple interest. After 3 years the principal amounts to N7,000.00. Find the sum invested.

  1. A.N7,840.00
  2. B.N6,250.00
  3. C.N6,160.00
  4. D.N5,833.33
Show the answer and explanation

Answer: B (N6,250.00)

Explanation

Amount = P(1 + 3 × 0.04) = 1.12P. So 1.12P = 7,000 and P = N6,250.