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A sum of ₦5,000 is invested at a simple interest rate of 8% per annum. How long will it take for the interest to amount to ₦1,200?
  • a)
    2 years
  • b)
    3 years
  • c)
    4 years
  • d)
    5 years
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
A sum of 5,000 is invested at a simple interest rate of 8% per annum. ...
Interest = Principal × Rate × Time, where Principal = ₦5,000, Interest = ₦1,200, and Rate = 8% per annum. Rearranging the formula:
Time = Interest / (Principal × Rate)
= ₦1,200 / (₦5,000 × 0.08)
= 5 years.
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