If the simple interest on a sum of money invested at 3% per annum for 212 1 2 years is ₦123, find the principal.

If the simple interest on a sum of money invested at 3% per annum for 2$\frac{1}{2}$  years is ₦123, find the principal.

Answer Details

To find the principal, we need to use the formula for simple interest: Simple Interest = (Principal * Rate * Time) / 100 where Rate is the interest rate, Time is the time period in years, and Principal is the amount of money invested. In this case, the rate is 3%, the time is 2 years, and the simple interest is ₦123. We can plug these values into the formula and solve for the Principal: ₦123 = (Principal * 3 * 2) / 100 ₦123 = (6 * Principal) / 100 ₦123 * 100 = 6 * Principal Principal = (₦123 * 100) / 6 Principal = ₦2050 Therefore, the principal is ₦2050. Answer (E) is not among the options provided. Among the given options, the closest answer to ₦2050 is option (C) ₦1,640.