SOLUTION: mr. santos wants to have an interest income of 3000 a year. how much must he invest for one year at 8 percent?

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Question 607474: mr. santos wants to have an interest income of 3000 a year. how much must he invest for one year at 8 percent?
Answer by w_parminder(53) About Me  (Show Source):
You can put this solution on YOUR website!
Let the required Principal to be invested = P
Time 'T' = 1 year
Rate 'R' = 8%
Interest 'I' = 3000
Using the relation,
I = %28P%2AR%2AT%29%2F100
OR
P = %28I%2A100%29%2F%28R%2AT%29
P = %283000%2A100%29%2F%288%2A1%29
P = 37500
So your Mr. Santos have to invest Rs. 37500 to get an annual interest of Rs. 3000