Daniel deposit a certain sum of money in a bank.if the simple interest rate of the bank decreases from 15/4% and 7/2% per annum, Daniel interest will increase by $50 in a year . Find the sum of money he deposits

Answer 1

Let the sum of money that Daniel deposits be x.

According to the problem, the increase in interest when the rate decreases from 15/4% to 7/2% is $50.

So, the interest at 15/4% per annum is [(15/4)/100]*x = 15x/400

And the interest at 7/2% per annum is [(7/2)/100]*x = 7x/200

Given that the increase in interest is $50 in a year, we can form the equation:

(7x/200) - (15x/400) = 50

Now, let's solve this equation.

Multiply both sides of the equation by 400 to get rid of the denominators:

2*(7x) - (15x) = 200 * 50

14x - 15x = 10000

-x = 10000

Divide both sides by -1:

x = -10000

Since the amount of money deposited cannot be negative, the value of x can be disregarded.

Therefore, there is no valid solution to this problem.