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?
- N136875
-
N131,875
- N126750
- N126250
The correct answer is: B
Explanation
The rate of interest charge = 51/2% p.aThe 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