A sum of money is invested for 24 months at 13,5% p.a. simple interest, and the repayment at the end of the term is R5100. Find the original principal amount that was invested.

Question

R4015.75


R6477


R28.69


R1202.83


R344.25

Answer 1

To find the original principal amount, we can use the formula for simple interest:

A = P(1 + rt)

Where:
A = Total amount at the end of the term (R5100)
P = Principal amount
r = Annual interest rate (13.5% or 0.135)
t = Time in years (24 months/12 = 2 years)

Substitute the values into the formula:

5100 = P(1 + 0.135*2)
5100 = P(1 + 0.27)
5100 = P(1.27)

Divide by 1.27 to solve for P:

P = 5100 / 1.27
P = 4015.75

Therefore, the original principal amount that was invested was R4015.75.

Therefore, the answer is R4015.75.