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Simple Interest, SMB-020

Chardie invests a sum of money in an account paying simple interest at a rate of 5.25% per annum.

No withdrawals or deposits are made into the account and over 4 years and the total value of Chardie's investment grows to `$22\ 385`.

Calculate the sum of money Chardie originally invested.   (3 marks)

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`$18\ 500`

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`text{Interest earned}\ = 22\ 385-18\ 500=$3885`

`I = 3885, \ \ r = 5.25/100, \ \ n = 4`

`I` `= Prn`
`3885` `= P xx 5.25/100 xx 4`
`P`  `= 3885/0.21`
  `= $18\ 500`

Filed Under: Simple Interest Tagged With: num-title-ct-corea, smc-4332-30-Find principal

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