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?
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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
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