JAMB 1989 · UME · Q8

Oke deposited ₦800.00 in the bank at the rate of 1212%12\frac12\% simple interest. After some time the total amount was one and a half times the principal. For how many years was the money left in the bank?

Worked solution (try it first)
  1. The amount is 1121\frac12 times ₦800, which is ₦1,200, so the interest is 1200−800=1200 - 800 = ₦400.
  2. One year's interest at 1212%12\frac12\% is 0.125×800=0.125 \times 800 = ₦100.
  3. So it takes 400÷100=4400 \div 100 = 4 years, option B.

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