If an investor invest N450,000 in a certain organization in order to yield X as a return of N25,000. Find the…

Analysis

The problem asks us to find the return on a new investment based on the performance of a previous investment. Since the organization yields returns based on the amount invested, we can assume a direct proportion relationship between the investment amount and the return.

Concept

When two quantities are directly proportional, the ratio of one to the other remains constant. Mathematically:

Step-by-Step Solution

Step 1: Identify the given values.

• Investment 1 ($I_1$) = N450,000
• Return 1 ($R_1$) = N25,000
• Investment 2 ($I_2$) = N700,000
• Return 2 ($R_2$) = ? (Let this be $Y$)

Step 2: Set up the proportion.

Step 3: Simplify the fraction.

Divide both 25 and 450 by 25:

Step 4: Solve for Y.

Rounding to the nearest kobo (two decimal places), we get N38,888.89K.

Conclusion

Comparing our result to the provided options, the value is approximately N38,888.90K.

Exam Tip: In proportion problems like this, always check if the second investment is larger than the first. Since N700,000 is larger than N450,000, your answer must be larger than the original return of N25,000. This quick check helps you eliminate incorrect options immediately!