Question

Aaron deposits a certain sum of money at 1.25% and after 3 years he gets £375 interest. find the sum deposited​

Answer 1

$361.45

Explanation:

Given that:

Interest rate (r) = 1.25% = 0.0125

Final amount (A) = 375

time (t) = 3 years

Using the relation :

A = p(1 + rt)

P = principal, initial amount deposited

375 = p(1 + 0.0125(3))

375 = p(1 + 0.0375)

375 = p(1.0375)

375 = 1.0375p

375 / 1.0375 = p

361.44578