Suppose Maria gets R13240.10 after investing a lump for 5 years.The bank quoted 11.5% simple interest.How much did Maria invest at the beginning?
Findings from the question:
Amount received after five years = R 13,240.10 (future value )
Simple interest rate "= 11.5\\% = \\frac{11.5}{100 }= 0.115"
Time = 5 years
Amount invested in the beginning = ? (present value)
"Present \\space Value=\\frac{Future \\space Value}{1+rt}"
"=\\frac{\\$13,240.10}{(1+0.115\\times)}"
"=\\frac{\\$13,240.10}{1.575}"
"=\\$8,406.41"
At the beginning, Maria had invested $ 8,406.41 on which she gets lump sum amount of $13,240.10.
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The interest earned on R32000 at 7% per annum compound annually is R4636.80.How long was the money invested in years?
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