If N2,500.00 amounted to N3,50.00 in 4 years at simple interest, find the rate at…

If N2,500.00 amounted to N3,50.00 in 4 years at simple interest, find the rate at which the interest was charged
  • A.
    5%
  • B.
    7(frac{1}{2})%
  • C.
    8%
  • D.
    10%
Correct Answer: Option D
Explanation

A = 3,500, P = N2,500
A = P + I
But I = N3,500 – N2,500
I = N1,000
I = (frac{PRT}{100})
N1,000 = (frac{2.500 times R times 4}{100})
1000 = 100R
R = (frac{1000}{100})
= 10%

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