A Cooperative Society, charges an interest of 51/2% per annum on any amount borrowed by its members. If a member borrows N125,000, how much does he pay back after one year?
A. N136875 B. N131,875 C. N126750 D. N126250
Correct Answer: B
Explanation
The rate of interest charge = 51/2% p.a The amount borrowed = N125, 000:00 Interest charge \(=\frac{11}{200} of N125,000\\ = 11 \times N625.00 = N6,875.00\) The amount refunded by the member with interest charge by the cooperative society N125,000+N6,875.00 = N131,875.00
