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NECO 2024 · Paper 1 · Q8

How many years will ₦12,000.00 saved in a bank take to amount to ₦12,960.00 at 2%2\% per annum simple interest?

Worked solution (try it first)
  1. The interest is the amount minus the principal: 12 960−12 000=12\,960 - 12\,000 = ₦960.
  2. One year's interest at 2%2\% is 0.02×12 000=0.02 \times 12\,000 = ₦240.
  3. So it takes 960÷240=4960 \div 240 = 4 years, option C.

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