Dada borrowed #2000from his friend at the rate of 2 1/2% per annum simple interest find the amoun he will pay back to his friend after 2 years
To calculate the amount Dada will pay back to his friend after 2 years, we need to determine the simple interest for 2 years and add it to the principal amount.
Step 1: Calculate the interest for 2 years using the formula:
Simple Interest = (Principal * Rate * Time) / 100
Principal = #2000
Rate = 2 1/2% = 2.5%
Time = 2 years
Interest = (2000 * 2.5 * 2) / 100 = #100
Step 2: Add the interest to the principal amount to get the total amount to be paid back:
Total Amount = Principal + Interest = 2000 + 100 = #2100
Therefore, Dada will pay back his friend #2100 after 2 years.