Musa borrows N10 at 2% per month simple interest and repays N8.00 after 4 months. How much does he still owe?
If Musa borrows N10.00 at 2% per month simple interest and repays N8.00 after 4 months, he still owes N2.80
Simple interest I = PRT/100
I = simple interest =?
P = principal = N10
R = rate = 2%
T = 4
I = (10 × 2 × 4)/100
I = 80/100
I = N0.8
This implies that the total interest after 4 months = N0.8
This means at the end of 4 months,
he should pay → the principal + the total interest for 4 months.
Repayment amount = principal + intertest
Repayment amount = 10 + 0.8 = N10.8
Thus, if he repays N8, he still owes (10.8 – 8) = N2.80
Now for the right answer to the above question:
- Option A is incorrect.
- Option B is not correct.
- C is correct.
- D is not the correct answer.
You may please note these/this:
- Simple interest I = PRT/100.
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/ culled from 2021 JAMB-UTME MATHEMATICS question 26 /