Musa borrows N10.00 at 2% per month simple interest and repays N8.00 after 4 months….

Musa borrows N10.00 at 2% per month simple interest and repays N8.00 after 4 months. How much does he still owe

Correct Answer: Option C

Explanation

I = (frac{PRT}{100})
= (frac{10 times 2 times 4}{100})
= (frac{4}{5})
= 0.8
Total amount = N10.80
He pays N8.00
Remainder = 10.80 – 8.00
= N2.80