Question
A sum of money is invested for 3 years at 15% p.a. simple interest, and the repayment at the end of the term is R1050. Find the original principal amount that was invested.
R52.50
R724.14
R22.83
R23.33
R1522.50
R52.50
R724.14
R22.83
R23.33
R1522.50
Answers
GPT 3.5
First, we can calculate the simple interest earned over the 3 years using the formula:
Simple Interest = Principal x Rate x Time
Let the principal amount be P.
Simple Interest = P x 0.15 x 3 = 0.45P
Therefore, the total amount to be repaid at the end of the term is P + 0.45P = 1.45P = R1050
So, P = R1050 / 1.45
P = R724.14
Therefore, the original principal amount that was invested was R724.14.
Simple Interest = Principal x Rate x Time
Let the principal amount be P.
Simple Interest = P x 0.15 x 3 = 0.45P
Therefore, the total amount to be repaid at the end of the term is P + 0.45P = 1.45P = R1050
So, P = R1050 / 1.45
P = R724.14
Therefore, the original principal amount that was invested was R724.14.