Find the principal which amounts to N5,500 at a simple in...
Find the principal which amounts to N5,500 at a simple interest in 5 years at 2% per annum.
N4,900
N5,000
N4,700
N4,800
Correct answer is B
Principal, P = Amount, A - Interest, I.
A = P + I
I = (P.T.R)/100 = (P x 5 x 2)/100 = 10P/100 = P/10
But A = P + I,
=> 5500 = P + (P/10)
=> 55000 = 10P + P
=> 55000 = 11P
Thus P = 55000/11 = N5,000
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