Deposit interest calculation

How much € do we have to save on a three-month term deposit with an interest rate of 2.5% pa? If we want the deposit to earn an interest of € 1,100

Final Answer:

x =  176000 Eur

Step-by-step explanation:

$$\begin{gathered} q_1=2.5\%=\frac{2.5}{100}=0.025 \\ {q}_2=\frac{3}{12}\cdot q_1=\frac{3}{12}\cdot \frac{1}{40}=\frac{3\cdot 1}{12\cdot 40}=\frac{3}{480}=\frac{1}{160}\doteq 0.0063 \\ a=1100\text{Eur} \\ x\cdot q_2=a \\ x\cdot 0.00625=1100 \\ 0.00625x=1100 \\ x=\frac{1100}{0.00625}=176000.00000256 \\ x=176000.000003=176000\text{Eur} \end{gathered}$$

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