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₦1,000,000.00 is put for 4% yearly interest for three years with the interest ...

Question

₦1,000,000.00 is put for 4% yearly interest for three years with the interest added at the end of each year to the base. At the end of the three years the money will be

A)
₦1,122,416.00
B)
₦1,124,864.00
C)
₦1,241,232.00
D)
₦1,422,232.00
E)
₦1,441,122.00

Explanation:

The interest at the end of one year will be
₦1,000,000*4%=₦4,000
Total amount of money at the end of one year
=₦1,000,000+₦4,000
=₦1,040,000
The interest at the end of two years will be
₦1,040,000*4%=₦41,600
Total amount of money at the end of two years
=₦1,040,000+₦41,600
=₦1,081,600
The interest at the end of three years will be
₦1,081,600*40%=₦43,264
Total amount of money at the end of three years
=₦1,081,600+₦43,264
=₦1,124,864

Discussion (5)

• Thanks for this. I'm an aspirant of UNICAL 2022/2023

1. You're welcome.
I am an aspirant too.

• The interest at the end of one year will be
₦1,000,000*4%=₦4,000
Total amount of money at the end of one year
=₦1,000,000+₦4,000
=₦1,040,000
The interest at the end of two years will be
₦1,040,000*4%=₦41,600
Total amount of money at the end of two years
=₦1,040,000+₦41,600
=₦1,081,600
The interest at the end of three years will be
₦1,081,600*40%=₦43,264
Total amount of money at the end of three years
=₦1,081,600+₦43,264
=₦1,124,864

1. Thank you for providing an explanation for the question!

2. 4% of N1,000,000 is = N40,000