jodi earns a simple interest of R1200 on a 4-year investment paying 6% per annum . how much was his principal investment?
300 per year
.06 P = 300
P = 300/.06
P = 5000
1=1
To find out how much Jodi's principal investment was, we can use the formula for simple interest:
Simple Interest = Principal × Interest Rate × Time
Given:
Simple Interest = R1200
Interest Rate = 6% per annum
Time = 4 years
Substituting these values into the formula, we get:
R1200 = Principal × (6/100) × 4
Simplifying further:
R1200 = Principal × (24/100)
To isolate the Principal, we can divide both sides of the equation by (24/100):
Principal = (R1200 × 100) / 24
Now we can calculate the value of the principal investment:
Principal = (R1200 × 100) / 24
Principal = (120000) / 24
Principal = R5000
Therefore, Jodi's principal investment was R5000.