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.
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
1 answer