00:01
Hi, in this problem, we are required to solve for the initial amount of money being invested.
00:07
And we are given with the fact that the interest amount, let's denote that as i, is equal to 196 pesos.
00:21
And the interest rate is also given, which is 6 .5%.
00:25
And then we are also provided with the time, which is 3.
00:30
Years and six months.
00:33
So we'll have to convert six months to years.
00:37
So we'll just divide it by 12 because we know that in a year you have 12 months.
00:41
So that will give us a sum of 6 over 12 is 0 .5.
00:47
So 3 .5 is 3 .5 years.
00:53
Now what do we need to find again? we need to find the initial amount or the principal amount being invested.
01:01
So, for a simple interest, the computation for the final amount, will say a, is equivalent to the principal amount multiplied by 1 plus rt...