Question

Jafta invested one half of his savings in a bond that paid 9,5% simple interest per year for two years and received R589,00 as interest. The value of his total savings before making the investment was

Answer 1

Topic - Simple Interest

Let us take his investment be Rs. P

Given:

• Sum = P
• Time, t = 2 years
• Rate of interest, r = 9.5%
• Interest, I = Rs. 589.00

We know that, I = Ptr/100. This gives:

589 = P * 2 * 9.5 / 100

or, P = (589 * 100) / (2 * 9.5)

or, P = 3100

So, Jafta invested Rs. 3100 in that bond.

• Answer: Therefore, the value of his total savings before making the investment was Rs. (2 * 3100) = Rs. 6200.

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