Musa borrows N10.00 at 2% per month simple interest and repays N8.00 after 4 months. How much does he still owe?

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

I = PRT100 $\frac{PRT}{100}$

= 10×2×4100 $\frac{10\times 2\times 4}{100}$

= 45 $\frac{4}{5}$

= 0.8

Total amount = N10.80

He pays N8.00

Remainder = 10.80 - 8.00

= N2.80