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
waec 2004mathematics

The correct answer is B. N131,875

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

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