Answer:
The amount we have to deposit in a savings account x = $ 17777.78
Step-by-step explanation:
Amount = $ 20000
R = 2.5 %
Time = 5 years
Take principal amount = x
Simple interest earned in five years
S.I. = [tex]\frac{P R T}{100}[/tex]
[tex]S.I. = \frac{P (2.5)(5)}{100}[/tex]
[tex]S.I. = \frac{x}{8}[/tex] ------- (1)
We know hat total amount is given by
Total amount = principal amount + simple interest
A = x + S.I.
[tex]A = x + \frac{x}{8}[/tex]
[tex]A = \frac{9x}{8}[/tex]
Given that the total amount after 5 years is = $ 20000
[tex]\frac{9x}{8} = 20000[/tex]
x = $ 17777.78
This is the amount we have to deposit in a savings account.
