Question

Dylan invested some money into his bank.

He agreed a simple interest rate of 3% per annum for a period of 2 years
At the end of the 2 years period the value of his investment increased by 72%
Work out the value Dylan initial investment was?

Answer 1

the initial investment is $1,200

Explanation:

The computation of the initial investment is shown below:

As we know that

Let us assume the investment be 100

So, the investment increased be 72

So,

Simple interest = Principal × rate of interest × time period

72 = Principal × 3% × 2 years

So, the principal is

= 72 ÷ 3% × 2

= $1,200

hence, the initial investment is $1,200