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At what rate will the interest on N400 increase... - JAMB Mathematics 2010 Question

At what rate will the interest on N400 increases to N24 in 3 years reckoning in simple interest?

A
3%
B
2%
C
5%
D
4%
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Correct Option: B

Using simple interest = (\frac{P \times T \times R}{100}),

where: P denoted principal = N400

T denotes time = 3 years

R denotes interest rate = ?

24 = (\frac{400 \times 3 \times R}{100})

24 x 100 = 400 x 3 x R

R = (\frac{24 \times 100}{400 \times3})

= 2%

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