If N225.00 yields N27.00 in x years simple interest at the rate of 4% per annum, find x.

Analysis

To solve this problem, we need to use the formula for Simple Interest. We are given the principal, the interest earned, and the rate, and we are asked to find the time ($x$).

Concept

The formula for Simple Interest ($I$) is:

Where:

• $I$ = Simple Interest (N27.00)
• $P$ = Principal (N225.00)
• $R$ = Rate per annum (4%)
• $T$ = Time in years ($x$)

Solution

1. Substitute the given values into the formula: $$27 = \frac{225 \times 4 \times x}{100}$$

2. Simplify the right side of the equation: First, multiply 225 by 4: $$225 \times 4 = 900$$

Now, substitute this back:

3. Divide 900 by 100: $$27 = 9 \times x$$ $$27 = 9x$$

4. Solve for $x$: $$x = \frac{27}{9}$$ $$x = 3$$

The time period is 3 years.

Conclusion

Comparing our result with the options provided, the correct value is 3. This matches option A.

Exam Tip

When dealing with simple interest questions in JAMB, always remember the acronym PRT (Principal, Rate, Time). If you are asked to find the time, you can quickly rearrange the formula to $T = \frac{100 \times I}{P \times R}$. This saves time during the exam!