Question

A man borrowed 4,000 Naira from a bank at the rate of 2% per annum simple interest find the find amount you will pay after 2

Answer 1

To calculate the total amount to be paid after 2 years with simple interest, you can use the formula:

\[
A = P + I
\]

Where:
- \( A \) is the total amount to be paid,
- \( P \) is the principal amount (the initial amount borrowed),
- \( I \) is the interest.

The simple interest \( I \) can be calculated using the formula:

\[
I = P \times r \times t
\]

Where:
- \( r \) is the rate of interest (as a decimal),
- \( t \) is the time in years.

Given:
- \( P = 4000 \) Naira,
- \( r = 2\% = 0.02 \),
- \( t = 2 \) years.

Now, calculate the interest:

\[
I = 4000 \times 0.02 \times 2 = 4000 \times 0.04 = 160 Naira
\]

Now, calculate the total amount \( A \):

\[
A = P + I = 4000 + 160 = 4160 Naira
\]

Therefore, the total amount the man will pay after 2 years is **4,160 Naira**.