Answer:
$3000
Step-by-step explanation:
let the inital sum be x
final amount = initial sum + interest = (450 + x)
given that annual interest rate = 5% = 0.05 and time = 3 years
recall that for simple interest
A = P(1 + rt)
where
A = final amount = (450 + x)
P = inital sum = x
r = interest rate = 5% = 0.05
t = time = 3 years
Substituting values into equation
(450 + x) = x [ 1 + (3)(0.05) ]
(450 + x) = x [ 1 + 0.15 ]
(450 + x) = x (1.15)
450 + x = 1.15x
1.15x - x = 450
0.15x = 450
x = 450/0.15 = $3000
