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27 May, 06:54

When invested at an annual rate of 5%, an amount earned Php 15,000.00 of simple interest in 2 years. How much money was initially invested?

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  1. 27 May, 09:53
    0
    Given:

    r = 8% = 0.05, simple interest rate

    t = 2 years, duration

    A = 15,000.00, value after 2 years

    Let P = principal, the amount invested.

    Then

    P (1 + 2*0.05) = 15000

    P = 15000/1.1 = 13636.36

    Answer: Php 13,636.36
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