Calculate the time taken for N3000 to earn N600 if invested at 8% simple interest

Analyze the question: We need the time (T) for a principal of N3000 to earn N600 interest at 8% per annum simple interest.

Concept: Simple interest formula:

I = (P × R × T) / 100

so T = (I × 100) / (P × R)

Solution:

• P = N3000
• I = N600
• R = 8%

T = (600 × 100) / (3000 × 8)

T = 60000 / 24000

T = 2.5 years = 2½ years

Check: Interest per year = 8% of 3000 = N240. In 2½ years: 240 × 2.5 = N600 ✓

Answer: Option A (2½ years).

Tip: Find the yearly interest first (8% of 3000 = N240), then divide the target interest by it (600 ÷ 240 = 2.5). This is quicker than plugging into the formula and lets you check the answer easily.