Musa borrows N10.00 at 2% per month simple interest and repays N8.00 after 4 months. How much does he still owe?
Question 1 Report
Musa borrows N10.00 at 2% per month simple interest and repays N8.00 after 4 months. How much does he still owe?
Answer Details
To calculate the simple interest that Musa owes, we can use the following formula:
Simple Interest = Principal * Rate * Time
Where Principal is the amount of the loan, Rate is the interest rate per month and Time is the number of months the loan is taken for.
In this case, the Principal is N10.00, the Rate is 2% per month, and the Time is 4 months.
So, the simple interest would be:
N10.00 * 2% * 4 = N0.80
This means that after 4 months, Musa would owe N10.00 + N0.80 = N10.80
Now, if we subtract the amount that he repaid (N8.00) from the total amount he owes (N10.80), we get N10.80 - N8.00 = N2.80
So, Musa still owes N2.80.
Answer: N2.80
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