What sum of money will amount to D10,400 in 5 years at 6% simple interest?

Explanation

A = P + 1

I = A - P

= 10,400 - P

Now using I = \(\frac{P \times T \times R}{100}\)

i.e. 10,400 - P = \(\frac{P \times 5 \times 6}{100}\)

= 100(10,400 - P) = 30P

10(10,400 - P) = 3P

104,000 - 10P = 3P

104,000 - 10P = 3P

104,000 = 3P + 10P

= 104,000 = 13P

P = \(\frac{104,000}{100}\)

P = D8,000