JAMB 1990 · UME · Q4

Commercial arithmetic

At what rate would a sum of ₦100.00 deposited for 5 years raise an interest of ₦7.50?

Worked solution (try it first)

Use $I = \dfrac{PRT}{100}$ and make $R$ the subject: $R = \dfrac{100I}{PT}$ .
Put in $I = 7.50$ , $P = 100$ and $T = 5$ : $R = \dfrac{750}{500} = 1.5$ .
So the rate is $1\frac12\%$ , option A.

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