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JAMB Mathematics 2015 Paper

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Question : 39

Total: 61

If an investor invest N450,000 in a certain organization in order to yield X as a return of N25,000. Find the return on an investment of N700,000 by Y in the same organization.

N14,950.50K
N25,150.30K
N15,000.00K
N38,888.90K

Solution:

Concept:

Return is proportional to the investment, so the ratio of return to investment is constant.

Explanation:

Let

R_1 = \mathrm{N}25{,}000

,

I_1 = \mathrm{N}450{,}000

,

R_2 = ?

, and

I_2 = \mathrm{N}700{,}000

.

Since the rate of return is the same:

\frac{R_1}{I_1} = \frac{R_2}{I_2}

Substituting the values:

\frac{25{,}000}{450{,}000} = \frac{R_2}{700{,}000}

Cross multiply to find

R_2

:

R_2 = \frac{25{,}000 \times 700{,}000}{450{,}000}

Simplify:

R_2 = \frac{17{,}500{,}000{,}000}{450{,}000} = \mathrm{N}38{,}888.89

Therefore, the return on the investment of

\mathrm{N}700{,}000

is approximately

\mathrm{N}38{,}888.90

.

Answer:

D.

\mathrm{N}38{,}888.90

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