An amount of # 600,000.00 was realized when a principal y was saved for 5% simple interest for 4 years, find the value of y
A
# 570,000
B
# 500,000
C
# 300,000
D
# 400,000
Verified Correct Answer: B.
Step-by-Step Mathematical Solution
Using \(A = P(1 + rt)\)
Substituting known values:
\(600,000 = y \left(1 + 0.05 \times 4\right)\)
\(600,000 = y \times 1.20\)
Solving for \( y \):
\(y = \frac{600,000}{1.20} = 500,000\)
Thus, the principal amount is # 500,000
Source: WAEC / JAMB / NECO Classroom Archive (Record #74170)