Find the principal which amounts to ₦5,500 at a simple interest in 5 years at 2% per annum.
Answer Details
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 = ₦5,000