Question #278221

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.


1
Expert's answer
2021-12-13T08:40:26-0500

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


Where AA is the accumulated amount,PP is the principal invested ,ii is the interest rate and nn is the time period for accumulation

We are given:

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

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

A=P(1+in)A=P(1+in)

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

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



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