Question

If 2 and half percent interest per annum is paid on fixed deposit, what will N500 000 amount to in 4 years?
Show workings bit by bit

Answer 1

Step 1: Calculate the interest rate per year:
2.5% = 0.025

Step 2: Calculate the interest earned over 4 years:
Interest earned = 0.025 x 500,000 x 4 = N50,000

Step 3: Calculate the total amount after 4 years:
Total amount = 500,000 + 50,000 = N550,000

Answer 2

This in 2023, most banks now have the math skills to calculate compound
interest! , simple interest is used for short periods of time, like 5 weeks.

amount = 500000(1.025)^4 = 551,906.45

Answer 3

impatient much?
Once is enough, thank you.
Repeated postings will not get faster or better responses.