Find the principal which amounts to ₦ 5,500 at a simple interest in 5 years at 2% per annum
A.
₦ 4,900
B.
₦ 5,000
C.
₦ 4,700
D.
₦ 4,000
Correct Answer: ₦ 5,000
Explanation
Principal = P, Simple Interest = I, Amount = A
Amount = Principal + Simple Interest
I = PRT/100
R = rate, T = time
I = (P×5×2)/100
I = 10P/100
I = P/10
Amount A = P + I
5500 = P + P/10
Multiply through by 100
5500 = 10P + P
5500 = 11P
p = 5500/11
p = ₦5000
Principal = P, Simple Interest = I, Amount = A
Amount = Principal + Simple Interest
I = PRT/100
R = rate, T = time
I = (P×5×2)/100
I = 10P/100
I = P/10
Amount A = P + I
5500 = P + P/10
Multiply through by 100
5500 = 10P + P
5500 = 11P
p = 5500/11
p = ₦5000
