.
The condition says
N*P = 120 (1)
(N+2)*(P-2) = 120 (2)
where N = the number of students, P = how much each of N students must pay.
Transform (2) in this way:
N*P + 2P - 2N - 4 = 120,
120 + 2(P-N) - 4 = 120,
2*(P-N) = 4 ====> P-N = 2.
So, you have
PN = 120,
P-N = 2,
and you can easily (MENTALLY) get the answer P = 12, N = 10.