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JAMB 1991 · UME · Q6

Musa borrows ₦10.00 at 2%2\% per month simple interest and repays ₦8.00 after 4 months. How much does he still owe?

Worked solution (try it first)
  1. Simple interest for 4 months at 2%2\% a month: 10×0.02×4=10 \times 0.02 \times 4 = ₦0.80.
  2. So after 4 months he owes 10+0.80=10 + 0.80 = ₦10.80.
  3. He repays ₦8.00, so he still owes 10.80−8=10.80 - 8 = ₦2.80, option C.

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