passwella.
Menu

UI Post-UTME Mathematics 2018 (Model questions) Question 17

Question 17

Commercial Arithmetic

A woman borrowed ₦500,000 from a lender and pays interest at 12% per annum. If she repaid ₦100,000 at the end of each year, what amount does she owe at the end of two years?

  1. A.₦400,260
  2. B.₦420,000
  3. C.₦415,200
  4. D.₦450,000
Show the answer and explanation

Answer: C (₦415,200)

Explanation

Year 1: 500,000 × 1.12 − 100,000 = 460,000. Year 2: 460,000 × 1.12 − 100,000 = ₦415,200.