An amount of N550,000.00 was realized when a principal, x was saved at 2% simple interest for 5 years. Find the value of x
- N470,000.00
- N480,000.00
- N490,000.00
-
N500,000.00
The correct answer is: D
Explanation
S.I = \(\frac{x \times 2 \times 5}{100}\) = 0.1x
A = P + S.I
550,000 = x + 0.1x
\(\frac{550,000}{1.1} = \frac{1.1x}{1.1}\)
x = N500,000