To calculate how much should be deposited in the account now to have a balance of R 2 000 in 3 months, we can use the formula for simple interest:
I = P*r*t
Where:
I = Interest earned
P = Principal amount (initial deposit)
r = Interest rate per period
t = Number of periods
Given that the interest rate is 17% and the time period is 3 months, we can calculate the interest earned:
I = R 2 000 - P
0.17 * P * 3 = R 2 000 - P
0.51P = R 2 000 - P
P = R 2 000 / 1.51
P ≈ R 1 324.50
Therefore, approximately R 1 324.50 should be deposited in the account now in order to have a balance of R 2 000 in 3 months.
Consider a savings account that earns 17% simple interest. How much should be deposited in the account now in order to have a balance of R 2 000 in 3 months?
R 1 165
R 695.65
R 85.11
R 1 684.21
R 1 918.47
1 answer