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

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

Correct Answer: Option A

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