SALAMAT Bank offers you two investment plans. The first investment requires you to invest Php 12,000 which pays a simple interest of  i₁ per annum. On the other hand, the second investment requires you to invest Php 20,000 which pays an effective interest rate of 2.5% per annum. SALAMAT Bank promises that the total amount of the two investment plans after 3 years is Php 35,000.


Find an expression for i₁ and use the expression to approximate i₁

Answer rating: 100% (QA)

Answer Step 1 Analysis We need to use simple interest formula to calculate i 1 Amount Principal1... View the full answer