Raj deposits $20000 in a bank that pays simple interest at a rate of 2.75% per annum. If the interest rate decreases to x% per annum, he will receive $50 less every year. Find the value of x
Raj deposits $20000 in a bank that pays simple interest at a rate of 2.75% per annum. If the interest rate decreases to x% per annum, he will receive $50 less every year. Find the value of x
Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Answer:
The easy way: $50 = 0.25% of 20,000
So, his interest rate was 2.75 - 0.25 = 2.5%
Or, algebraically,
20000(1.0275 - (1+x/100)) = 50
x = 2.5
Please mark me as brainliest
Thank you and have a nice day