Home » A Cooperative Society, charges an interest of 51/2% per annum on any amount borrowed by…

A Cooperative Society, charges an interest of 51/2% per annum on any amount borrowed by…

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: Option 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

Related:  The volume of a hemispherical bowl is (718frac{2}{3}). Find its radius .