A man invests a sum of money at 5% per annum simple interest. After 4 years his total interest plus principal invested is #6,000. Find the sum invested
A. #4,000 B. #4,500 C. #5,000 D. #5,500
Correct Answer: C
Explanation
To find the sum invested, we can use the formula for simple interest:
where: - \( P \) is the principal amount (the sum invested), - \( R \) is the rate of interest per annum (5% in this case), - \( T \) is the time in years (4 years), - The total amount after 4 years (which is the principal plus interest) is given as \(\#6,000\).