Answer: £1200
Step-by-step explanation:
The formula to find simple interest: [tex]I=Prt[/tex], where P is the initial amount , r is the rate of interest (in decimal) and t is time . (1)
Given : Dylan agreed 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.
i.e. r= 3% = 0.03 ; t=2 ; I=£72
Substitute all the values in (1), we get
[tex]72=P(0.03)(2)\\\\\Rightarrow\ P=\dfrac{72}{2\times0.03}=1200[/tex]
Hence, the Dylan’s initial investment = £1200
