Find the principal which amounts to ₦ 5,500 at a simple interest in 5 years at 2% per annum
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Correct Answer: Option B
Explanation:
Principal = P, Simple Interest = I, Amount = A
Amount = Principal + Simple Interest
I = \(\frac{PRT}{100}\)
R = rate, T = time
I = \(\frac{P \times 5 \times 2}{100}\)
I = \(\frac{10P}{100}\)
I = \(\frac{P}{10}\)
Amount A = P + I
5500 = P + \(\frac{P}{10}\)
Multiply through by 100
5500 = 10P + P
5500 = 11P
p = \(\frac{5500}{11}\)
p = ₦5000
Principal = P, Simple Interest = I, Amount = A
Amount = Principal + Simple Interest
I = \(\frac{PRT}{100}\)
R = rate, T = time
I = \(\frac{P \times 5 \times 2}{100}\)
I = \(\frac{10P}{100}\)
I = \(\frac{P}{10}\)
Amount A = P + I
5500 = P + \(\frac{P}{10}\)
Multiply through by 100
5500 = 10P + P
5500 = 11P
p = \(\frac{5500}{11}\)
p = ₦5000