If the simple interest on a certain amount of money saved in a bank for 5 years at 2(frac{1}{2})% annum is N500.00, calculate the total amount due after 6 years at the same rate
-
A.
N2,500.00 -
B.
N2,600.00 -
C.
N4,500.00 -
D.
N4,600.00
Correct Answer: Option D
Explanation
P = (frac{100l}{RT} = frac{100 times 500}{5 times 2.5} = frac{50,000}{12.5})
= 4,000
Annual interest is (frac{500}{5}) = 100
for 6 year = 4,000 + 100 + 100 + 100 + 100 + 100 + 100
= N 4,600