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Garang made a 5 years investment, the interest rate 15%. He earned 11,250 SSP in interest. How much was original investment?

Mathematics

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Here's the solution for the first simple interest problem.

The formula for simple interest is I=P⋅R⋅TI = P \cdot R \cdot T, where:

  • II is the interest earned
  • PP is the principal amount (original investment)
  • RR is the annual interest rate (as a decimal)
  • TT is the time in years

Question 1: Garang made a 5 years investment, the interest rate 15%. He earned 11,250 SSP in interest. How much was original investment?

  1. Identify the given values.

    Given:
    Interest (II) = 11,250 SSP
    Time (TT) = 5 years
    Rate (RR) = 15% = 0.15

  2. Use the simple interest formula to find the principal (PP).

    I=P⋅R⋅TI = P \cdot R \cdot T

    Rearrange the formula to solve for PP:

    P=IR⋅TP = \frac{I}{R \cdot T}

    Substitute the given values:

    P=112500.15⋅5P = \frac{11250}{0.15 \cdot 5} P=112500.75P = \frac{11250}{0.75} P=15000P = 15000

    The original investment was 15,000 SSP.

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