Ali builders needs 15000in 36 monthsHow much shouls he depos

Ali builder\'s needs $15,000in 36 months.How much shouls he deposit at aq simple intrest rate 5% in order to accumlate thre needed money by that time?

Solution

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4)

The final amount needed = 15,000$

Simple Interest = Principal * Rate * Time

Amount = Principle + Simple Interest

Simple Interest = P * (5/100) * (36/12) = 0.15P

15000 = P + 0.15P

15000 = 1.15P

P = 15000/1.15 = 13043.47$

Hence the money required is equal to 13043.47$ in order to have $15000 at the end of 3 years with an interest rate of 5%