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A man took a loan of NP at the rate of 4% per annum simple interest. If at the e...


Question

A man took a loan of NP at the rate of 4% per annum simple interest. If at the end of 5 year she paid back ₦720, find the value of P?

Options

A) ₦456

B) ₦500

C) ₦556

D) ₦600

The correct answer is D.

Explanation:

Amount = Principal (P) + Interest (I).
720 = P + I
\(720 = P + \cfrac{PRT}{100}\)
72000 = 100P + PRT
72000 = 100P + P \(\times\) 4 \(\times\) 5
72000 = 100P + 20P
72000 = 120P
P = \(\cfrac{72000}{120}\) = 600
P = ₦600

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Dicussion (1)

  • Amount = Principal (P) + Interest (I).
    720 = P + I
    \(720 = P + \cfrac{PRT}{100}\)
    72000 = 100P + PRT
    72000 = 100P + P \(\times\) 4 \(\times\) 5
    72000 = 100P + 20P
    72000 = 120P
    P = \(\cfrac{72000}{120}\) = 600
    P = ₦600

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