Answer:
The sum of money deposited is approximately $22,021.74
Step-by-step explanation:
The given interest and amounts of the deposit are outlined as follows;
The simple interest per annum, R = 0.325%
The number of years the money is deposited, T = 4 years
The total amount received (Interest + Initial deposit), A = $50,650
We have;
I = P × R × T
Where;
P = The principal (initial amount deposited)
R = The (annual) interest rate = 0.325%
T = The time = 4 years
Therefore;
The total amount received, A = P + I
P + I = P + P × R × T = P × (1 + R × T)
∴ A = P + I = P × (1 + R × T)
P = A/(1 + R × T)
Plugging in the values, gives;
P = 50,650/(1 + 0.325 × 4) = 506,500/23 ≈ 22,021.74
The sum of money deposited, P = $22,021.74
