Question

An amount of #550,000.00 was realised when a principal,x was saved 2% simple interest for 5 years. Find the value of x​

Answer 1

Answer:

£500,000.00

Step-by-step explanation:

Principal = x

Saving rate  = 2% PA simple

Time = 5 years

Final amount = £550,000

• x*(1+ 2*5/100) = 550,000
• x*(1 + 0.1) = 550.000
• 1.1x = 550,000
• x= 550,000/1.1
• x= 500,000

Principal amount is £500,000

Answer 2

Answer:

$\huge \boxed{{x=500,000}}$

Step-by-step explanation:

$A=P(1+rt)$

$A$ = amount   ⇒  550000

$P$ = principal amount   ⇒  x

$r$ = rate   ⇒  2%

$t$ = time   ⇒  5

$\displaystyle 550000=x(1+\frac{2}{100} (5))$

Solve for the brackets.

$\displaystyle 550000=\frac{11}{10}x$

Multiply both sides of the equation by $\frac{10}{11}$.

$500000=x$

The value of x (principal amount) is 500,000.