What sum of money will amount to D10,400 in 5 years at 6% simple interest?
A
D8,000.00
B
D10,000.00
C
D12,000.00
D
D16,000.00
Verified Correct Answer: A.
Step-by-Step Mathematical Solution
A = P + 1
I = A - P
= 10,400 - P
Now using I = \(\frac{P \times T \times R}{100}\)
i.e. 10,400 - P = \(\frac{P \times 5 \times 6}{100}\)
= 100(10,400 - P) = 30P
10(10,400 - P) = 3P
104,000 - 10P = 3P
104,000 - 10P = 3P
104,000 = 3P + 10P
= 104,000 = 13P
P = \(\frac{104,000}{100}\)
P = D8,000
Source: Myschool Past Questions Archive (Record #46097)