Question

A certain bank paid an interest of 8% per annum for fixed deposits. Bello received an amount of #806 at the end of 3 years. How much was the sum he deposited?​

Answer 1

The sum Bello deposited was #750.

To calculate this, we use the formula for simple interest:

I = Prt

Where I is the interest, P is the principal (the amount deposited), r is the rate of interest (8% per annum), and t is the time (3 years).

We can rearrange the formula to solve for P:

P = I/rt

Substituting the given values, we get:

P = 806/0.08(3)

P = 750

Therefore, the sum Bello deposited was #750.