This isn't the same problem but it's an idea. of what you're doing.
Week 5 Quiz - Saving (15pts) 1. If the interest rate on a savings account is 0.01%, approximately how much money do you need to
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Answer:
Rs 328
Step-by-step explanation:
Find the <u>principal</u> amount invested.
<u>Simple Interest Formula</u>
I = Prt
where:
- I = interest earned
- P = principal
- r = interest rate (in decimal form)
- t = time (in years)
Given:
- I = Rs 320
- r = 5% = 0.05
- t = 2 years
Substitute the given values into the formula and solve for P:
⇒ 320 = P(0.05)(2)
⇒ 320 = P(0.1)
⇒ P = 3200
<u>Compound Interest Formula</u>
where:
- I = interest earned
- P = principal amount
- r = interest rate (in decimal form)
- n = number of times interest applied per time period
- t = number of time periods elapsed
Given:
- P = 3200
- r = 5% = 0.05
- n = 1 (annually)
- t = 2 years
Substitute the given values into the formula and solve for I:
Therefore, the compound interest on the same sum for the same time at the same rate is Rs 328.