Lesson 1,
Topic 3
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The Amount
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Topic Content:
- The Amount
The addition of the principal and the interest for the period (i.e. years) is called the amount at the end of that time. Therefore:
Amount = Principal + Interest
Example 1.3.1:
Calculate the principal which amounts to ₦4970 in 10 years at 4% per annum
Solution
Simple interest for 1 year is 4% of principal
S.I for 10 years = 10 × 4 = 40%
Amount = 100 + 40% of the principal
140% = 4970
Principal = \( \frac{100}{140} \scriptsize \; \times \; 4970 \)
Principal = ₦3550.00