Question

How much Ione invest if she wants to have P19,640.62 at the end of 2.75 years at a bank that offers 11(1/4)% simple interest.

Answer 1

$A=P(1+in).................(i)$

Where $A$ is the accumulated amount,$P$ is the principal invested ,$i$ is the interest rate and $n$ is the time period for accumulation

We are given:

$A= P19,640.62$ , $i=11.25\%=0.1125$ and $n=2.75$ years

Substitute this values to equation $(i)$ Above:

$A=P(1+in)$

$19,640.62 =P[1+(0.1125\times 2.75)]$

$\implies P={19640.62\over [1+(0.1125\times 2.75)]}=14999.9961813842\approx P15000$