Dylan invested some money into his bank.
He agreed on a simple interest rate of 3% per annum for a period of 2 years.
At the end of the 2-year period, the value of his investment increased by£72
Work out the value of Dylan's initial investment.
two years at 3% = .03*2 = .06
so
.06 times original deposit = 72
so 72/.06
which is
1200
Sorry to be a pain, but I don't really understand this answer.
Could you explain to me?
Thank you very much!
Hi,
I could work, please can you answer the question.
Dylan inverted some money in his bank.
He agreed to a simple interest rate of 3% per annum for a period of 2 years.
At the end of the 2-year period, the value of his investment increased by £72.
Work out the value of Dylan’s initial investment.
1200
£1200
To work out the value of Dylan's initial investment, we need to use the formula for simple interest:
I = P * r * t
Where:
I = Interest
P = Principal (initial investment)
r = Interest rate per annum
t = Time period
Given:
r = 3% = 0.03 (converted to decimal form)
t = 2 years
I = £72
Substituting the values into the formula, we get:
£72 = P * 0.03 * 2
Simplifying the equation, we have:
£72 = P * 0.06
Dividing both sides of the equation by 0.06:
£72 / 0.06 = P
This gives us:
£1,200 = P
Therefore, the value of Dylan's initial investment was £1,200.
So is it 1200%?
Thank you i am a Year 7 and my head of maths set this as a challenge and i think it is GCSE questions.
I didn't quite understand it and the video never helped me.
Don't make fun because i am 11 years old doing stuff for mabye 16-17 year olds