a sum of money lent out at 12% simple interest amounts to 744 after 2 years. find the sum
LectureNotes mentioned that a sum of money lent out at 12% simple interest amounts to 744 after 2 years, and asked to find the sum. To find the sum, we need to use the formula for simple interest:
Simple Interest = (Principal Amount) x (Interest Rate) x (Time)
In this case, the interest rate is 12% or 0.12, and the time is 2 years. Let’s assume the principal amount is “P.”
Given that the simple interest after 2 years is 744, we can set up the equation as follows:
744 = P x 0.12 x 2
Simplifying the equation:
744 = 0.24P
To find the value of P, we need to isolate it. We can do this by dividing both sides of the equation by 0.24:
P = 744 / 0.24
Calculating the value:
P = 3100
Therefore, the sum of money lent out is 3100.