Answer:
The amount we have to deposit in a savings account x = $ 17777.78
Step-by-step explanation:
Amount = $ 20000
R = 2.5 %
Time = 5 years
Take principal amount = x
Simple interest earned in five years
S.I. =
------- (1)
We know hat total amount is given by
Total amount = principal amount + simple interest
A = x + S.I.
Given that the total amount after 5 years is = $ 20000
x = $ 17777.78
This is the amount we have to deposit in a savings account.