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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?

A) ₦456

B) ₦500

C) ₦556

D) ₦600

### 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

## 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