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JAMB 1987 · UME · Q9

A man invests a sum of money at 4%4\% per annum simple interest. After 3 years, the amount is ₦7,000.00. Find the sum invested.

Worked solution (try it first)
  1. Simple interest for 3 years at 4%4\% is 3×4%=12%3 \times 4\% = 12\% of the principal PP.
  2. The amount is principal plus interest, so 1.12P=70001.12P = 7000.
  3. Divide both sides by 1.12: P=6250P = 6250.
  4. The sum invested was ₦6,250.00, option B.

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