Answer to Question #268229 in Financial Math for Balorah

Question

On 21 January 2019 banang invested an amount in an account earning 6.5% simple interest. If she has R1200 available on 9 May 2019 then the amount that she invested on 21 Jan was

Answer 1

Simple interest=principal×R×T

Interest=1200

Rate=6.5

Time=3.6/12

P=??

1200=p×6.5/100×3.6/12

Make p the subject

P=1200/0.0195

P=61538.462