Question

What sum would yield a simple interest of 70$ in 4 years if the rate interest is 3.5% p.a

Answer 1

$500

Explanation:

First, converting R percent to r a decimal

r = R/100 = 3.5%/100 = 0.035 per year,

then, solving our equation

P = 70 / ( 0.035 × 4 ) = 500

P = $ 500.00

The principal required to

accumulate interest of $ 70.00

on a rate of 3.5% per year for 4 years is $ 500.00.