Calculate the amount of the fixed deposit.

Question

ScanSolve AI Tutor · Accepted Answer

Here's the calculation for the amount of the fixed deposit:

Calculate the total annual interest.
From the previous adjustments, the trial balance showed R4 050 for 9 months of interest. The adjustment for accrued interest added R1 350 for the remaining 3 months of the financial year.
Total annual interest = $\text{R}4\,050 + \text{R}1\,350 = \text{R}5\,400$ .
Use the interest formula to find the principal (fixed deposit amount).
The formula for annual interest is: Annual Interest = Principal $\times$ Annual Interest Rate.
We know the annual interest is R5 400 and the annual interest rate is 11.25%.
$\text{R}5\,400 = \text{Principal} \times 11.25\%$
Convert the percentage to a decimal and solve for the Principal.
Convert $11.25\%$ to a decimal: 0.1125.
$\text{R}5\,400 = \text{Principal} \times 0.1125$ $\text{Principal} = \frac{\text{R}5\,400}{0.1125}$ $\text{Principal} = \text{R}48\,000$
The amount of the fixed deposit is $\text{R}48\,000$ .

Answer