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
Verified Correct Answer: B.
Step-by-Step Mathematical Solution
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
Source: Myschool Past Questions Archive (Record #46349)