Oke deposited N800.00 in the bank at the rate of 12\(\frac{1}{2}\)% simple interest. After some time the total amount was one and half times the principal. For how many years was the money left in the bank?
A. 2\(\frac{2}{3}\) B. 4 C. 5\(\frac{1}{3}\) D. 8
Correct Answer: B
Explanation
P = N800 (Principal), r = 12\(\frac{1}{2}\)% or 0.125 After sometimes, A = 1.5 x 800 = N1,200 A = P(1 + Tr) = 1200 = 800(1 + 0.125T) = 1200 = 800(1 + 0.125T) 1200 = 800(1 + 0.125T) 0.125T = 0.5 T = \(\frac{0.5}{0.125}\) = 4
