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On her recent birthday, April 11, 2016, Shealtiela was given by her mother a certain sum...

On her recent birthday, April 11, 2016, Shealtiela was given by her mother a certain sum of money as birthday present. She decided to invest the said amount on 20% interest . If the account will mature on Christmas day at an amount of P1,850,000, how much did she received from her mother on her birthday.

-this is an simple interest

with solution

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Answer #1

ANSWER:

Let P be the principal amount

Days from 11th april 2016 to 25th Dec 2016 are 258 days (excluding 25th)

Simple Interest: P * R * No of days

Thus P + Simple Interest = Mature amount

P + [P * 20/100 * 258/ 366] = 1,850,000

1.14098P = 1,850,000

This gives P = 1,621,408

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