Problema Solution
Suppose a person wants to invest $2000 at 5% simple interest for one year. The fund she finally puts it ins only pays 4% simple interest. Using inverse varation find out how much she needs to invest to earn the same amount of interest as investing $2000 at 5%. Explain your work
Answer provided by our tutors
As we know amount of interest after one year would be = Prt/100
where P = principle
r= rate of interest
t =time
therefore interest = (2000*5*1)/100 =100
there fore amount received after one year = 2000+100= 2100
I=(P*4*1)/100
4P=100I
P=25I...
Now amount after one year = P+I= P+P/25
26P/25= 2100 ( Given in the Question)
Solving this P=2019.23(Answer)