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A man invests a sum of money at 4% per annum simple invest. After 3…

A man invests a sum of money at 4% per annum simple invest. After 3 years, the principal amounts to N7,000.00. Find the sum invested
  • A.
    N7,840
  • B.
    N6,250.00
  • C.
    N616.00
  • D.
    N5,833.33
Correct Answer: Option B
Explanation

I = (frac{PRT}{100})
100(A – P) = prt
P = (frac{100A}{100 + RT})
= (frac{100 times 7000}{100 + (4 times 3)})
p = (frac{700,000}{112})
= N6,250.00