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

**A.**** N10.80**

**B.**** N10.67**

**C.**** N2.80**

**D.**** N2.67**

**QUICK ANSWER…**

**C**

**DETAILS…**

**If ****Musa borrows N10.00 at 2% per month simple interest and repays N8.00 after 4 months****,**** he still owe****s N2.80**

**Simple interest I = PRT/100**

**Where,**

**I = simple interest =?**

**P = principal = N10**

**R = rate = 2%**

**T = 4**

**Thus,**

**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.**

**KEY-POINTS…**

**You may please note these/this:**

**Simple interest I = PRT/100.**

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**/ culled from 20****21**** JAMB-UTME**** MATHEMATICS**** question**** 26 ****/**